A federal trade court on Thursday delivered another setback to US President Donald Trump by ruling that the administration’s temporary 10% global tariffs violated federal law.
In a 2-1 decision, a three-judge panel of the United States Court of International Trade said Trump had exceeded the authority given to the president by Congress. The court called the tariffs “invalid” and “unauthorized by law.”
The ruling came months after the Supreme Court of the United States struck down a broader set of tariffs that the Trump administration had imposed on imports from nearly every country last year.
India Also Faced Higher Tariffs
India also faced heavy US tariffs under Trump’s trade measures. The US imposed a 25% duty on Indian goods and added another 25% penalty tariff because India continued importing Russian crude oil.
Later, India and the US reached an interim trade arrangement. The deal reduced the effective tariff rate to 18% before the Supreme Court cancelled the measures.
Court Limits Relief to Plaintiffs
The court did not block the tariffs nationwide. Instead, it limited the ruling to the three plaintiffs in the case. These included the state of Washington, spice company Burlap & Barrel, and toy maker Basic Fun!
Jeffrey Schwab, who represented the two businesses, said uncertainty still remains for companies outside the lawsuit.
“It’s not clear’’ whether other businesses would have to continue to pay the tariffs, Schwab said, according to Associated Press.
The case focused on temporary 10% worldwide tariffs imposed under Section 122 of the Trade Act of 1974. The Trump administration introduced those tariffs after the Supreme Court rejected its earlier tariff policy in February. The temporary duties were supposed to remain in place until July 24.
Another Legal Blow for Trump
The ruling marked another legal challenge for Trump’s attempt to expand presidential tariff powers.
Last year, Trump used the International Emergency Economic Powers Act (IEEPA) of 1977 to justify sweeping import tariffs. He argued that the US trade deficit created a national emergency.
However, on February 28, the Supreme Court ruled that the law did not give the president power to impose such broad tariffs.
The US Constitution gives Congress the authority to impose taxes and tariffs. However, Congress can grant limited tariff powers to the president.
The Trump administration is expected to appeal the latest ruling. The case would first go to the United States Court of Appeals for the Federal Circuit and could later return to the Supreme Court.