In a significant legal setback to US President Donald Trump, a federal trade court struck down the implementation of his proposed ‘Liberation Day’ import tariffs, ruling that he exceeded his constitutional authority.
The three-judge panel at the Court of International Trade in Manhattan determined on Wednesday (US time) that Trump’s across-the-board duties on countries running trade surpluses with the US violated the scope of powers granted to the presidency under the International Emergency Economic Powers Act (IEEPA), according to local media reports.
The Trump administration sought to defend the tariffs by referencing the IEEPA, a statute intended to address “unusual and extraordinary” risks during a national emergency.