A three-judge panel of the U.S. Court of International Trade ruled today that President Trump does not have the authority under economic emergency legislation to impose sweeping global tariffs.Trump imposed tariffs under the 1977 International Emergency Economic Powers Act, or IEEPA, but the court ruled that “IEEPA does not authorize any of the worldwide, retaliatory, or trafficking tariff orders.”
The court said, “The worldwide and retaliatory tariff orders exceed any authority granted to the president by IEEPA to regulate importation by means of tariffs. The trafficking tariffs fail because they do not deal with the threats set forth in those orders. This conclusion entitles plaintiffs to judgment as a matter of law; as the court further finds no genuine dispute as to any material fact, summary judgment will enter against the United States.”
Stephen Vaden, President Trump’s nominee to be Agriculture deputy secretary, sits on the court, but he was not one of the judges who considered this case. The three judges who issued the ruling were Gary Katzmann, Timothy Reif and Jane Restani.The Senate Agriculture Committee on May 12 approved Trump’s nomination of Vaden, but all 11 Democrats voted against him. The full Senate has not considered his nomination.The case was brought by five small businesses including V.O.S. Selections, a New York liquor firm, and other small businesses with support from Liberty Justice Center, a conservative legal organization
Farm groups and agribusinesses have expressed concerns that Trump’s tariffs on goods imported to the United States would lead to retaliation against U.S. products.
Kush Desai, a White House spokesman, sharply rebuked the court for its ruling, saying in a statement that unfair trade relationships had “decimated American communities, left our workers behind and weakened our defense industrial base — facts that the court did not dispute,” The New York Times reported.
Trump “might still be able to temporarily launch import taxes of 15% for 150 days on nations with which the U.S. runs a substantial trade deficit,” the Associated Press said. “The ruling notes that a president has this authority under Section 122 of the Trade Act of 1974.”The case has received extensive media coverage.
–The Hagstrom Report