Judges have ruled the US president overstepped his authority in imposing sweeping tariffs on imports under an emergency powers law
The US Court of International Trade has ruled that President Donald Trump has no right to impose sweeping tariffs on imports under the 1977 International Emergency Economic Powers Act (IEEPA). By invoking the legislation, the White House bypassed the need for congressional approval that would otherwise have been required to take such steps.
In early April, the US president slapped a baseline 10% tariff on all imported goods, with higher rates for China, Mexico, Canada and the EU member states, citing trade imbalances. Trump has since suspended some of those measures amid ongoing negotiations.
On Wednesday, the New York-based court sided with a number of small businesses that had filed lawsuits against Trump, arguing that he had overstepped his authority.
According to a statement issued by the court and quoted by US media, “the Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs.”
However, the ruling does not affect any tariffs that Trump has imposed under different legislation, namely, Section 232 powers from the Trade Expansion Act of 1962. This means that his 25% tariff on imported autos and parts as well as on all foreign-made steel and aluminum will remain in place.
The court ruling has noted that the US president could still slap a 15% tariff on countries with which Washington has a substantial trade deficit for 150 days, with Section 122 of the Trade Act of 1974 granting Trump the right to do so.
The White House has filed an appeal, with US media suggesting that the US Supreme Court will likely be asked to settle the matter.
In a post on X on Thursday, Stephen Miller, who serves as the White House deputy chief of staff for policy and as homeland security advisor, described the court’s decision as a “judicial coup” that has gotten “out of control.”
There is a total of at least seven lawsuits, which argue that the IEEPA legislation does not authorize the use of tariffs, and that the trade deficit cited by Trump does not constitute an emergency as the US has run it for 49 consecutive years.
Multiple states led by Oregon have filed similar lawsuits.
Trump has repeatedly claimed that the global trade system in its current form has left the US “looted, pillaged, raped and plundered” by other nations. The Republican has also insisted that sweeping tariffs will help to bring manufacturing jobs back to the US.
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