Judiciary Reins In Executive: Rules Trump Tariffs Illegal, Exceeded Authority

India-West News Desk

NEW YORK, NY – A U.S. federal court delivered another blow to President Donald Trump’s trade policies on May 28, ruling that his sweeping imposition of tariffs exceeded his legal authority. The U.S. Court of International Trade in Manhattan found that the tariffs, some enacted under emergency economic powers, were unlawful. The unanimous three-judge panel emphasized that their decision was not a judgment on the “wisdom or likely effectiveness” of the tariffs, but rather a determination of their legality.

The court’s ruling centered on Trump’s use of the International Emergency Economic Powers Act (IEEPA) to implement the duties. The judges concluded that IEEPA does not explicitly authorize the president to impose tariffs and using it for such a purpose could constitute an unconstitutional transfer of congressional authority.

This decision effectively halts the enforcement of most of Trump’s tariffs, including the 30% duties on Chinese imports, 25% on certain goods from Mexico and Canada, and a general 10% tariff on many other imports. The case was brought by Liberty Justice Centre on behalf of several small businesses, including wine importer VOS Selections, which cited significant financial harm from the tariffs. A separate lawsuit filed by twelve Democratic-led states was also decided in the same ruling.

The Trump administration swiftly appealed the ruling and requested a pause, arguing it “jeopardizes ongoing negotiations with dozens of countries.” White House officials criticized the court’s authority, with spokesperson Kush Desai stating, “It is not for unelected judges to decide how to properly address a national emergency.”

Financial markets reacted positively to the news, with U.S. dollar rallying and major stock index futures rising significantly in after-hours trading. (with inputs from ANI and Reuters)