A federal court in New York has blocked President Donald Trump’s plan to impose massive taxes on imports from almost every country in the world. The three-judge panel of the U.S. Court of International Trade ruled that Trump overstepped his authority when he invoked the 1977 International Emergency Economic Powers Act to declare a national emergency and justify the sweeping tariffs.
The tariffs, which were imposed last month, would have disrupted global commerce, rattled financial markets, and raised the risk of higher prices and recession in the United States and around the world. However, the court has blocked them, ruling that Trump’s action was an overreach of executive power.
The decision blocks tariffs on countries with which the US runs a trade deficit as well as those with which it has a more balanced trade relationship. The court has also ruled that the tariffs were imposed without addressing the underlying issues they were meant to solve.
This is a significant setback for Trump’s trade agenda, and experts say it could lead to changes in how companies manage their supply chains and negotiate with trading partners. Wendy Cutler, a former US trade official, said the decision “throws the president’s trade policy into turmoil.”
The ruling does leave some tariffs in place, including those on foreign steel, aluminum, and autos. However, these levies were invoked under a different law that required a Commerce Department investigation and could not be imposed at the president’s own discretion.
Overall, the court’s decision is seen as a victory for Congress and a rebuke of Trump’s attempts to assert executive power over trade policy.
Source: https://www.mississippifreepress.org/a-federal-court-blocked-trumps-sweeping-tariffs-citing-economic-chaos-heres-what-you-need-to-know