Trade Court Halts Major Portion of Trump’s Tariff Agenda

A recent publication by CNN reveals that a U.S. trade court has overturned extensive tariffs that were put in place during the Trump era, determining that the management lacked the authority to impose such broad levies under emergency powers.

On May 28, the three-judge panel of the U.S. Court of International Trade (USCIT) unanimously decided to suspend tariffs introduced by President Trump on April 2. This ruling affects a range of tariffs, including a 10% charge on all imports into the United States and specific rates like 30% on Chinese goods and 25% on certain products from Mexico and Canada. However, it does not alter existing tariffs on foreign automobiles, auto parts, steel, and aluminum.

The Trump administration had relied heavily on the International Emergency Economic Powers Act (IEEPA) from 1977 to justify these tariffs as necessary responses to national emergencies. Interestingly enough, this act had never been previously used for imposing tariffs before this instance. A lawsuit brought before USCIT argued that IEEPA was designed to limit presidential power rather than extend it. The judges—one appointed by Trump himself—concurred with this perspective, stating that IEEPA “does not permit any global retaliatory or trafficking tariff orders” enacted under claims of national emergency.

In response to this ruling, Trump’s team has requested permission from the court to maintain these tariffs while they pursue an appeal. Should their request be denied, they will have just ten days to lift these levies as mandated by USCIT’s permanent injunction order. White House spokesperson Kush Desai expressed discontent with the decision in a statement asserting that “it should not be up to unelected judges” to determine how national emergencies are managed. Meanwhile, economic advisor Kevin Hassett dismissed concerns about potential disruptions as mere “minor hiccups.” Still, without these tariff threats looming over negotiations with around 90 countries for new trade agreements, there could be significant implications for future international relations.