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Court Blocks Trump's Tariffs
A federal trade court blocked President Trump's across-the-board tariffs, ruling that he exceeded his constitutional authority in imposing duties on countries with trade surpluses with the U.S.
COURT'S CONSTITUTIONAL RULING
Authority Violation: The Manhattan-based Court of International Trade ruled that the U.S. Constitution gives Congress, not the president, exclusive authority to regulate international commerce.
Emergency Powers Limits: The three-judge panel determined that presidential emergency powers cannot override Congress's constitutional trade authority, regardless of the tariffs' potential effectiveness.
Legal Precedent: Trump is the first U.S. president to use the International Emergency Economic Powers Act (IEEPA) to impose tariffs, historically reserved for sanctions against enemies or asset freezes.
MARKET AND POLITICAL RESPONSE
Currency Impact: The U.S. dollar rose against the Swiss franc and Japanese yen following the court decision.
Immediate Appeal: The Trump administration filed a notice of appeal within minutes of the ruling.
White House Reaction: Deputy Chief of Staff Stephen Miller criticized the decision on social media, calling it a "judicial coup."
LEGAL CHALLENGES
Multiple Lawsuits: The ruling addressed two cases - one from the nonpartisan Liberty Justice Center representing five small importing businesses, another from 13 U.S. states.
Business Impact: Affected companies range from a New York wine importer to a Virginia educational kit manufacturer, all arguing tariffs would harm their operations.
Ongoing Litigation: At least five other legal challenges to the tariffs remain pending.
TARIFF BACKGROUND
National Emergency Declaration: Trump invoked IEEPA in early April, declaring the trade deficit a national emergency justifying 10% across-the-board tariffs, with higher rates for countries like China with large trade surpluses.
Implementation Changes: Many country-specific tariffs were paused a week after implementation, and on May 12, the steepest China tariffs were temporarily reduced while pursuing a longer-term trade deal.
Market Disruption: Trump's "on-and-off-again tariffs," intended to restore U.S. manufacturing capability, have shocked financial markets.
STATE OPPOSITION
Oregon Leadership: Oregon Attorney General Dan Rayfield, leading the states' lawsuit, called the tariffs "unlawful, reckless and economically devastating."
Constitutional Principle: Rayfield emphasized that "trade decisions can't be made on the president's whim," highlighting the importance of legal constraints on executive power.
The ruling represents a significant constitutional challenge to Trump's trade policy approach and sets up a potential Supreme Court showdown over presidential versus congressional authority in international commerce.