A US federal court has blocked the introduction of reciprocal tariffs of at least 10% announced by President Donald Trump earlier this April on “Liberation Day.”
The judge ruled that the president exceeded his authority by imposing general tariffs on imports from countries selling more goods to the United States than they purchase.
The US Constitution grants exclusive powers to Congress to regulate trade with other nations, emphasised the US Court of International Trade, based in New York, in its decision, noting that these powers are not overridden by the president’s emergency powers to protect the US economy.
The president cannot invoke the 1977 International Emergency Economic Powers Act (IEEPA), which Trump used to justify his presidential orders to implement these tariffs, to "impose an unlimited surcharge on products from nearly every country," according to the judgment seen by AFP.
The judges noted that the orders made on 2 April to impose a minimum 10% tariff on all incoming goods to the US, with up to 50% depending on the country of origin, "exceed the powers granted to the president under the IEEPA for regulating imports through the use of tariffs."
In an accompanying opinion, an unnamed judge argued that an "unrestricted delegation of tariff authority would amount to a surrender of legislative power to another branch of government," which contradicts the US Constitution.
The IEEPA allows the president to take necessary economic sanctions in an emergency to combat an "extraordinary and unusual threat," the court highlighted.
Five small American businesses filed a lawsuit against the tariffs announced by Trump on April 2nd, arguing that these duties would harm their ability to conduct business.
Six additional lawsuits are underway against Trump’s tariff policy, along with objections from 13 US states and other small business groups.
In a statement, a White House spokesperson criticised the decision by "unelected judges" who "do not have the authority to decide how to properly manage a national emergency."
"The president vowed to put America first, and the government is determined to use all executive powers to address this crisis and restore American greatness," added the spokesperson, Kush Desai.
According to US media, the government plans to appeal the decision.
