Daijiworld Media Network- Washington
Washington, May 29: In a significant legal blow to President Donald Trump, a US federal trade court on Wednesday struck down the controversial "Liberation Day" tariffs, ruling that the president had exceeded his constitutional authority by unilaterally imposing sweeping import duties without Congressional sanction.
The decision came from a three-judge panel of the US Court of International Trade in Manhattan, which strongly reaffirmed that the power to regulate international commerce lies exclusively with Congress — a principle rooted in the US Constitution.
Trump’s tariff plan, rolled out in April, aimed to impose a flat 10 percent duty on all imported goods, with steeper tariffs targeting countries with major trade surpluses with the US, including China. Branded as part of a broader economic nationalism push, the so-called "Liberation Day" tariffs were meant to rejuvenate domestic industries and curb trade deficits.
Invoking the International Emergency Economic Powers Act (IEEPA), Trump had declared the trade imbalance a national emergency to justify the move. However, the court concluded that the statute does not authorize such economic maneuvering.
“The court does not pass upon the wisdom or likely effectiveness of the President’s use of tariffs as leverage. That use is impermissible not because it is unwise or ineffective, but because federal law does not allow it,” the panel noted in its judgement, as reported by Reuters.
The ruling followed legal challenges from five small-scale US import businesses and a coalition of 13 states, spearheaded by Oregon Attorney General Dan Rayfield. The plaintiffs termed the tariffs as "unlawful, reckless, and economically devastating."
Although the Department of Justice sought dismissal on grounds that the plaintiffs had not shown direct harm, the court disagreed, signaling a broader pathway for judicial review of executive economic actions.
Financial markets reacted favourably to the decision, with the US dollar gaining strength against traditional safe-haven currencies like the Swiss franc and Japanese yen.
While Trump’s legal team is expected to appeal the verdict to the Federal Circuit Court in Washington, D.C., the matter could eventually reach the US Supreme Court, setting the stage for a potentially landmark constitutional showdown over trade authority.
Legal experts view the ruling as a reaffirmation of checks and balances, particularly in an era where executive overreach has been a topic of intense political and legal debate.