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Invalid, Unauthorised By Law
‘Invalid, Unauthorised By Law’: US Trade Court Strikes Down Trump’s Temporary 10% Global Tariffs
A federal trade court on Thursday delivered another blow to US President Donald Trump’s tariff policy, ruling that the administration’s temporary 10% global tariffs were not permitted under federal law.
In a 2-1 ruling, a three-judge panel of the US Court of International Trade in New York held that Trump had overstepped the authority granted to the president by Congress. The court declared the tariffs “invalid" and “unauthorised by law."
The ruling came months after the US Supreme Court struck down a wider set of tariffs introduced by the Trump administration last year on imports from almost every country.
India was also affected by the US tariffs, which included a 25% duty along with an additional 25% penalty tariff linked to its continued purchase of Russian crude oil. However, a temporary India-US trade arrangement later brought down the effective tariff rate to 18% before the Supreme Court invalidated the measures.
The court did not impose a nationwide block on the tariffs. Instead, the ruling applied only to the three plaintiffs in the case, the state of Washington, spice company Burlap & Barrel, and toy maker Basic Fun!
Jeffrey Schwab, director of litigation at the Liberty Justice Center, which represented the two companies, said uncertainty remained over whether businesses not involved in the lawsuit would still be required to pay the tariffs.
“It’s not clear’’ whether other businesses would have to continue to pay the tariffs, Schwab said, according to AP.
The case centred on temporary 10% worldwide tariffs imposed under Section 122 of the Trade Act of 1974 after the Supreme Court’s February ruling against the earlier tariff framework. Those tariffs were due to remain in effect until July 24.
The ruling marked another legal challenge to the Trump administration’s attempts to widen presidential tariff powers and shield the US economy through import duties.
Last year, Trump had invoked the International Emergency Economic Powers Act (IEEPA) of 1977, arguing that the US trade deficit constituted a national emergency. The declaration was then used to justify sweeping tariffs on imports.
However, on February 28, the Supreme Court ruled that IEEPA did not authorise the president to impose such tariffs.
Under the Constitution, Congress has the authority to impose taxes and tariffs, though lawmakers can delegate limited tariff powers to the president.
The Trump administration is expected to appeal Thursday’s ruling. Any challenge would first be heard by the US Court of Appeals for the Federal Circuit in Washington and could eventually return to the Supreme Court.
Source: News18
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