US court blocks Trump's 'Liberation Day' tariffs, rejects India-Pakistan ceasefire argument
PTC News Desk: A US court on Wednesday blocked President Donald Trump's 'Liberation Day' tariffs citing that the President overstepped his legal authority with the across-the-board duties on countries that sell more to the United States than they buy.
The decision, issued by a three-judge panel at the Court of International Trade in Manhattan, emphasised that the Constitution grants Congress exclusive power to regulate international commerce, a power not overridden by the president’s emergency authorities.
"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 three-judge panel said.
Tariff Details:
A 10% baseline duty was imposed on all imports.
Higher tariffs targeted countries with significant trade surpluses with the U.S., particularly China.
The goal was to stimulate domestic productivity and address the trade deficit.
Legal Justification:
Trump invoked the International Emergency Economic Powers Act (IEEPA), declaring the trade imbalance a national emergency.
Court Ruling:
The court rejected this rationale, stating the IEEPA does not authorize tariffs as a tool for economic pressure in this way.
Department of Justice Argument:
Sought dismissal, claiming plaintiffs lacked standing and had not suffered harm.
The court disagreed, allowing the lawsuit to proceed and enabling further legal challenges.
- With inputs from agencies
