US Court Blocks Trump's Global Tariffs Citing Overreach of Power
In a major legal setback, former US President Donald Trump's attempt to impose retaliatory tariffs has been halted by a trade court ruling in Manhattan. On Wednesday, the court issued a stay on the tariffs announced by Trump on April 2 under the pretext of Liberation Day, declaring that the former president had overstepped his legal authority.
Tariffs Tied to Global Trade Imbalance
Trump's tariffs targeted countries that export large volumes of goods to the United States while purchasing less in return. He invoked the International Emergency Economic Powers Act (IEEPA), claiming it gave him the authority to impose tariffs worldwide during national emergencies. However, the court disagreed, stating that Trump had misinterpreted the scope of the act.
Court's Verdict: Limits of Presidential Power
A three-judge panel in Manhattan clarified that Congress has not granted the president unlimited powers under the IEEPA. “The president may only impose financial sanctions necessary to address extraordinary threats during a national emergency,” the bench ruled.
According to the US Constitution, the authority to regulate international trade lies exclusively with Congress. While the court refrained from explicitly answering whether the president could impose such tariffs, it ruled that the move was not legally permissible and would violate constitutional limits.
India-Pakistan Conflict Used as Justification
The Trump administration argued in court that the tariffs played a crucial role in halting escalating tensions between India and Pakistan. Officials claimed that after the April 22 terror attack in Pahalgam, Jammu and Kashmir, Trump used tariff incentives to broker a ceasefire between the two nuclear-armed nations. The court, however, was unconvinced by the geopolitical rationale.
Officials also noted that trade negotiations with several countries were at a sensitive stage, with deals expected by July 7. The court declined to consider these arguments in its ruling.
Trump Administration Appeals Ruling
Soon after the court's decision, the Trump administration filed an appeal, arguing that limiting the president's tariff powers would weaken the United States' ability to use financial tools strategically in international affairs.
Trump had originally announced a 10% tariff on major US trading partners, including China and the European Union, on April 2. However, due to backlash and market instability, some of these tariffs were temporarily suspended. On May 12, the US and China agreed to a mutual 90-day tariff reduction. Trump had also set a July 8 deadline for a trade deal with India.
