A US federal trade court struck down Donald Trump’s 10% global tariffs, ruling they exceeded presidential powers granted by Congress
The Trump administration is expected to appeal the decision after the 2-1 ruling by the United States Court of International Trade
Trump also warned of higher tariffs on European Union goods if the bloc fails to finalise a trade framework by July 4
US Court Blocks Trump’s Global Tariffs, Rules President Overstepped Authority
Federal trade court says 10% worldwide tariffs were “unauthorised by law”; Trump threatens higher EU duties amid fresh trade tensions
Summary
A federal court ruled Thursday against the new global tariffs that President Donald Trump imposed after facing a loss at the Supreme Court in February.
A split three-judge panel of the Court of International Trade in New York found the 10 per cent global tariffs were illegal after small businesses sued.
The court ruled, 2-1, that Trump had overreached the tariff power granted to the president by Congress. The majority stated that the tariffs are "invalid" and "unauthorised by law."
As anticipated, the administration would first appeal Thursday's ruling to the Washington-based U.S. Court of Appeals for the Federal Circuit before potentially going to the Supreme Court, reported AP.
At issue are temporary 10 per cent worldwide tariffs the Trump administration imposed after the Supreme Court in February struck down even broader double-digit tariffs the president had imposed last year on almost every country. The new tariffs, invoked under Section 122 of the Trade Act of 1974, were set to expire July 24.
Meanwhile, Trump took to social media to post that goods from the European Union would face higher tariff rates if the 27-member bloc fails to approve last year’s trade framework by July 4.
After the president stated last Friday that EU automobiles would be subject to a higher 25 per cent tariff beginning this week, the announcement seemed to be a deadline extension. Following what he called a "great call" with Ursula von der Leyen, president of the European Commission, Trump made the revised announcement.
The U.S. Supreme Court's decision in February further complicated the trade agreement struck last year, and the U.S. president was still unhappy that the European Parliament had not yet finalised it.
“A promise was made that the EU would deliver their side of the Deal and, as per Agreement, cut their Tariffs to ZERO!” Trump posted. “I agreed to give her until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels.”
Advertisement
It was unclear from the post whether Trump was implying that the tariff rates would jump on all EU goods or the increase would only apply to autos.
Published At: