Washington: A US trade court struck down President Donald Trump’s 10% across-the-board tariffs on Thursday, declaring them illegal. The Court of International Trade delivered yet another blow to the administration’s aggressive trade policy, though the duties will continue collecting for most importers during the appeal process.
Small Businesses Score Major Legal Win
This was a result of a lawsuit filed by a spice manufacturer and a toy seller, with the support of Liberty Justice Center. It was found that Trump had abused an uncommon provision in the Trade Act of 1974 when he applied the temporary tariff. Previously, the Supreme Court had ruled that Trump had gone beyond the scope of his presidential powers when imposing tariffs on products from China.
Moving onto the decision made by the court, it was ruled in a split decision of 2-1 that presidents are not entitled to use their own interpretation of balance-of-payments deficits.
Tariffs Remain Central to Trump Agenda
Tariffs were intended to balance out trade differences but were met with significant criticism from businesses and several states. While there were 23 state attorneys general that participated in this lawsuit, the court ruled most claims invalid due to the lack of standing.
There was never a question about whether or not these tariffs would be repealed because tariffs were to expire on July 6th. It appears as though more action is being taken with the use of another provision by the White House.
The latest court decision brings up an interesting power struggle between the judicial and executive branches. Businesses hope for some stability despite the impending action to be taken by the administration.
