Federal Court Strikes Down Tariffs Imposed by Trump Administration
In a significant legal ruling, three federal judges in New York City voided new tariffs on nearly all imports into the United States, which had been imposed since April. This decision, made by the U.S. Court of International Trade, favored Oregon and 11 other states, alongside various businesses who contested the tariffs.
The case centered on claims that former President Trump was misusing the International Emergency Economic Powers Act (IEEPA) of 1977 by declaring an "unusual and extraordinary threat" to justify the sweeping tariffs. The judges ruled that the IEEPA does not grant the president the authority to impose worldwide and retaliatory tariffs. They emphasized that the Constitution clearly allocates tariff powers to Congress, rejecting the notion that the president could wield unbounded tariff authority.
During a May hearing, attorneys for Trump and federal agencies hinted at a potential appeal to the U.S. Supreme Court. They argued the tariffs were necessary to address issues like drug trafficking and trade deficits. However, state attorneys general emphasized that only Congress has the power to set tariff policy and that the tariffs bore no legitimate connection to the supposed threats.
The ruling halted four specific executive orders from Trump that instituted fluctuating tariffs primarily on imports from China, Mexico, and Canada, which had a significant economic impact. Oregon Attorney General Dan Rayfield remarked, “This ruling is a victory for Americans beyond just Oregon,” pointing out the tariffs’ adverse effects on prices for essential goods and the economy at large.
This decision marks a pivotal moment in the ongoing debate over executive power and economic policy, with implications for trade relations and domestic economic stability.
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