Setback for Donald Trump, US Federal Trade Court Blocks Him From Imposing Sweeping Tariffs Under Emergency Powers Law
A federal trade court on Wednesday blocked US President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law. The ruling from a three-judge panel came after several lawsuits argued that Trump exceeded his authority, left US trade policy dependent on his whims and unleashed economic chaos.
Washington, May 29: A federal trade court on Wednesday blocked US President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law.
The ruling from a three-judge panel came after several lawsuits argued that Trump exceeded his authority, left US trade policy dependent on his whims and unleashed economic chaos. US Court Blocks Donald Trump’s ‘Liberation Day’ Tariffs, Cites Overreach of Presidential Powers.
At least seven lawsuits are challenging the levies, the centrepiece of Trump's trade policy. Tariffs must typically be approved by Congress, but Trump said he has the power to act because the country's trade deficits amount to a national emergency. US Tariff: South Korea’s Auto Exports Decline in April After Steep US Import Duties on Foreign-Made Cars.
He imposed tariffs on most countries of the world at one point, sending markets reeling. The plaintiffs argued that the 1977 International Emergency Economic Powers Act (IEPPA) does not authorise the use of tariffs. Even if it did, they said, the trade deficit does not meet the law's requirement that an emergency be triggered only by an "unusual and extraordinary threat". The US has run a trade deficit with the rest of the world for 49 consecutive years.
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