Panel of judges finds the president overstepped his authority by imposing across-the-board duties on imports from trading partners.
A United States trade court has ruled that President Donald Trump exceeded his authority when he imposed blanket tariffs on imports from US trading partners, issuing a permanent injunction that immediately halts the tariffs and demands a government response within 10 days.
The Court of International Trade, based in New York, said the US Constitution grants Congress exclusive authority to regulate commerce with other countries that is not overridden by the president’s emergency powers to safeguard the US economy.
“The court does not pass upon the wisdom or likely effectiveness of the President’s use of tariffs as leverage,” a three-judge panel wrote on Wednesday. “That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it.”
The ruling, if it stands, could derail Trump’s global trade strategy to use steep tariffs to wring concessions from trading partners. It creates deep uncertainty around multiple simultaneous negotiations with the European Union, China and many other countries.
The court struck down Trump’s tariff orders issued since January under the International Emergency Economic Powers Act (IEEPA), a statute meant for addressing rare and extraordinary national emergencies. Tariffs introduced under other laws, such as those targeting specific industries like steel, autos and aluminium, were not addressed in this ruling.
The Trump administration swiftly filed an appeal, disputing the court’s jurisdiction. A White House spokesperson insisted trade imbalances posed a national crisis. “It is not for unelected judges to decide how to properly address a national emergency,” said Kush Desai, the White House deputy press secretary, defending Trump’s executive actions as necessary to protect US industry and security.
Al Jazeera’s Mike Hanna, reporting from Washington, DC, said the judges on the court had been appointed by various Democrat and Republican presidents.
“This particular court cannot be accused of being an activist one, as Trump and his followers have accused other courts that have ruled against him,” Hanna said.
“One of the judges was appointed by Trump himself, another by former President Barack Obama and the third by the former Republican President Ronald Reagan.”
The Court of International Trade handles matters relating to customs and trade law. Its rulings can be challenged in the US Court of Appeals for the Federal Circuit and eventually taken to the Supreme Court.
Financial analyst Robert Scott told Al Jazeera the tariffs failed to deliver tangible results even in Trump’s first term. “Most of those tariffs did not see the US trade position improve,” he said. “US trade deficits continued to grow and China’s exports to the world kept rising. They simply rerouted goods through other countries.”
The ruling came in a pair of lawsuits, one filed by the nonpartisan Liberty Justice Center on behalf of five small US businesses that import goods from countries targeted by the duties, and the other by 12 US states.
The companies, which range from a New York wine and spirits importer to a Virginia-based maker of educational kits and musical instruments, have said the tariffs will hurt their ability to do business.
“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,” the judges wrote in their decision.
At least five other legal challenges to the tariffs are pending.