A federal court has ruled that President Donald Trump exceeded his authority when imposing certain tariffs under the Trade Act of 1974.
Court Blocks Trump Tariffs
The U.S. Court of International Trade ruled Thursday that Trump’s tariffs issued under Section 122 of the Trade Act were not authorized by law.
The court said the president relied on claims about the country’s trade deficit, but the law only allows temporary tariffs to address specific “balance-of-payments” deficits.
States Challenged The Tariffs
A group of states led by Letitia James argued that tariff powers belong to Congress and that Trump lacked authority to impose the import surcharges on his own.
The states also argued that a trade deficit is different from the “balance-of-payments deficit” mentioned in the law.
The court agreed with that argument and said the administration failed to show the type of economic conditions required under the statute.
Tariffs Permanently Blocked
Judges permanently blocked the tariffs involved in the lawsuit, saying stopping unlawful actions serves the public interest.
However, the court did not issue a nationwide injunction, meaning the ruling currently applies only to the parties involved in the case.
Attorney General Reacts
James welcomed the decision, saying the ruling confirmed that a president cannot rewrite trade laws without congressional approval.
