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US Court Blocks Trump’s ‘Liberation Day’ Tariffs

The Federal court blocked Trump’s tariffs citing overreach of power. Trump has made policies to impose tariffs on foreign goods as a key feature of his administration's trade policy.

US President Donald Trump showing list of reciprocal tariffs X/StocktwitsIndia

A United States Federal court on Wednesday blocked president Donald Trump’s attempt to impose “liberation day” tariffs under emergency powers, stating that “he exceeded his authority by enacting blanket tariffs” on nations that have a trade deficit with the USA. A three-judge bench of the Court of International Trade in Manhattan asserted that the constitution grants this power to the Congress and it cannot be overridden by imposing emergency powers. 

"The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage. That use is impermissible not because it is unwise or ineffective, but because federal law does not allow it," the panel said.

Trump Administration’s response

The order came in light of Trump’s April 2 executive orders that levied a 10 percent baseline tariff on almost all imports from countries with a huge trade deficit with the USA. The Trump government has filed an appeal against the directive while questioning the authority of the court. 

Administration spokesperson Kush Desai stated in a statement that, "It is not for unelected judges to decide how to properly address a national emergency. President Trump pledged to put America first, and the administration is committed to using every lever of executive power to address this crisis and restore American greatness."

The lawsuit was filed by two parties, one from the nonpartisan Liberty Justice Center representing five small U.S. businesses, and another from a group of 13 U.S. states led by Oregon. The businesses included a wine importer from New York and an educational kit maker from Virginia who were affected by the tariffs.

The Trade court had written in its orders that, "There is no question here of narrowly tailored relief; if the challenged Tariff Orders are unlawful as to Plaintiffs they are unlawful as to all."

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