The US Court of International Trade issued a sweeping ruling on Wednesday, striking down President Donald Trump's blanket tariffs on imports and stating he exceeded his authority by invoking emergency powers under the International Emergency Economic Powers Act (IEEPA). The court ruled that only Congress has the constitutional right to regulate foreign commerce. The decision permanently blocks the tariffs Trump imposed since January and orders the administration to revoke them within 10 days. The Trump administration immediately appealed, contesting the court's jurisdiction. The tariffs, framed by Trump as a response to a national emergency caused by trade deficits, included duties of up to 54 per cent and were part of a broader effort to extract concessions from key trade partners like China and the European Union. The court's ruling, if upheld, undermines that strategy and injects uncertainty into ongoing negotiations. The case was brought by five small US importers and 12 states, who argued the tariffs were unlawful and economically harmful. Judges noted the injunction applied broadly, not just to the plaintiffs. At least five similar legal challenges are pending. Financial markets responded positively to the ruling, with US equities and the dollar gaining ground. However, the White House defended the tariffs, calling the trade deficit a national emergency and criticising the judiciary for intervening in executive decisions. Trump's use of IEEPA marked the first time the law—traditionally used for sanctions—was invoked to impose tariffs. Attribution: Reuters Subediting: M. S. Salama
