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A US federal court on Wednesday blocked President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law, Associated Press reported.
The ruling from a three-judge panel at the New York-based U.S. Court of International Trade came after several lawsuits arguing Trump’s “Liberation Day” tariffs exceeded his authority and left the country’s trade policy dependent on his whims, according to AP.
Trump has repeatedly said the tariffs would force manufacturers to bring back factory jobs to the U.S. and generate enough revenue to reduce federal budget deficits.
White House spokesperson Kush Desai said that trade deficits amount to a national emergency “that has decimated American communities, left our workers behind, and weakened our defense industrial base — facts that the court did not dispute.”
The administration, he said, remains “committed to using every lever of executive power to address this crisis and restore American Greatness.”
But for now, Trump might not have the threat of import taxes to exact his will on the world economy as he had intended, since doing so would require congressional approval, according to AP.
What remains unclear is whether the White House will respond to the ruling by pausing all of its emergency power tariffs in the interim, according to AP.
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 ruling notes that a president has this authority under Section 122 of the Trade Act of 1974, AP reported.
The case was heard by three judges: Timothy Reif, who was appointed by Trump, Jane Restani, named to the bench by President Ronald Reagan and Gary Katzman, an appointee of President Barack Obama, according to AP.
“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the court wrote, referring to the 1977 International Emergency Economic Powers Act.
The ruling left in place any tariffs that Trump put in place using his Section 232 powers from the Trade Expansion Act of 1962. He put a 25% tax on most imported autos and parts, as well as on all foreign-made steel and aluminum.
