The US Court of International Trade struck down President Trump’s worldwide reciprocal tariffs on Wednesday, ruling that he exceeded his authority under the International Emergency Economic Powers Act — a law that came into effect in 1977 that allows the president to bypass congressional approval and regulate commerce during a declared national emergency involving an unusual and extraordinary foreign threat.
The court, however, found no legal connection between the tariffs and the Trump administration's stated emergency of drug trafficking, halting their enforcement and barring future modifications. The Trump administration was given 10 days to carry out the judges’ orders.
The ruling responded to two separate lawsuits challenging Trump's tariffs — the first filed by a group of state attorneys general and the second filed by five American businesses that rely on goods imported to the US.
White House spokesperson Kush Desai said:
“Foreign countries’ nonreciprocal treatment of the United States has fueled America’s historic and persistent trade deficits. These deficits have created a national emergency that has decimated American communities, left our workers behind, and weakened our defense industrial base – facts that the court did not dispute. It is not for unelected judges to decide how to properly address a national emergency.”
Oregon Attorney General and lead plaintiffs in the case Dan Rayfield said:
“[The ruling is] a victory not just for Oregon, but for working families, small businesses, and everyday Americans. President Trump’s sweeping tariffs were unlawful, reckless, and economically devastating. They triggered retaliatory measures, inflated prices on essential goods, and placed an unfair burden on American families, small businesses and manufacturers.”
Canadian Prime Minister Mark Carney said the court's ruling was “consistent with Canada's longstanding position” that Trump's tariffs were unlawful.
Come Thursday, the tariffs are back!
The Trump Administration immediately appealed the decision, and a federal appeals court temporarily reinstated most of Trump's tariffs the next day. The initial ruling would have lowered the overall effective US tariff rate to about 6%, but the appellate court's temporary reinstatement means it will remain at about 15%, according to estimates from Oxford Research.
Trump wrote on social media:
“The horrific decision stated that I would have to get the approval of Congress for these Tariffs. If allowed to stand, this would completely destroy Presidential Power — The Presidency would never be the same! This decision is being hailed all over the World by every Country, other than the United States of America.”
Should President Trump have the authority to issue sweeping tariffs? Is there a legal connection between Trump's tariffs and reducing drug trafficking? Or is that just a pretext to give Trump the power to play God of Tariffs? If you were a judge, what would you have ruled? Hit reply and let me know.