Trump tariffs overturned as court upholds limits on presidential trade powers

A US trade court has blocked most of President Donald Trump's tariffs by ruling that he exceeded his authority by imposing broad, across-the-board duties on imports from trading partners in the country. 

As reported by Reuters, the Court of International Trade ruled that the Constitution grants Congress the exclusive authority to regulate foreign commerce and this power cannot be overridden by presidential emergency measures aimed at protecting the economy.

The move throws the Trump administration’s global trade dealings into uncertainty. The country is currently in talks with dozens of nations, though it had already put a pause on trade wars with China and the European Union.

"The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage," a three-judge panel said in the decision to issue a permanent injunction on the blanket tariff orders issued by Trump since January. 

"That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it."

The judges gave the Trump administration 10 days to issue new orders in line with the injunction, but the administration has filed an appeal challenging the court’s authority.

Invalidated tariffs

The court invalidated all of Trump’s tariff orders issued since January under the International Emergency Economic Powers Act (IEEPA), a law intended for national emergencies. Namely, this affects the so-called ‘reciprocal’ levies.

However, the ruling did not address separate industry-specific tariffs on automobiles, steel, and aluminium imposed under a different legal authority.

Rulings from the Manhattan-based Court of International Trade can be appealed to the US Court of Appeals for the Federal Circuit in Washington, D.C., and potentially to the US Supreme Court.

Earlier this month, Trump posted that the EU has scheduled meetings to resume trade talks with the US over a proposed 50% import tariff. He expressed satisfaction with the tariff proposal, criticising the EU for previously stalling negotiations.

President Trump also threatened to impose a 25% tariff on iPhones not made in the US, stating he had previously told Apple CEO Tim Cook that devices sold in America should be manufactured domestically - not in India or elsewhere.