Credited from: REUTERS
Twelve U.S. states are poised to challenge President Donald Trump's "Liberation Day" tariffs in federal court, arguing that he overstepped his authority by declaring a national emergency to impose these tariffs on imports. The states, represented by the Democratic attorneys general of New York, Illinois, Oregon, and nine others, contend that Trump sought a "blank check" to manage trade affairs "at his whim," misinterpreting the International Emergency Economic Powers Act (IEEPA) which is intended to address "unusual and extraordinary" threats to the nation, according to Reuters and The Jakarta Post.
The states assert that not only does the U.S. trade deficit fail to qualify as an "emergency," but the tariffs negatively impact families, indicating that the average household would face increased costs of up to $3,800 annually. This legal challenge arises from concerns that Trump imposed tariffs without congressional approval or public consent, a point highlighted by Oregon Attorney General Dan Rayfield, who denounced the actions as a misuse of emergency powers, reports The Jakarta Post and South China Morning Post.
The Trump administration, in defense of the tariffs, insists that the president’s actions are constitutional and necessary for protecting the U.S. economy. They argue that removing these tariffs would "kneecap" Trump's ability to negotiate during ongoing trade discussions, particularly related to China and the fentanyl crisis. This legal argument asserts that the national emergency status is a political matter not subject to judicial review, as stated by government representatives during the hearings in the Court of International Trade, according to Reuters, The Jakarta Post, and South China Morning Post.
The upcoming legal proceedings come amidst a backdrop of several lawsuits regarding Trump's tariff policies, with California filing a separate challenge in federal court and various other cases initiated by businesses and advocacy groups. The outcomes from the Court of International Trade, which decides disputes over international trade and tariffs, could set significant legal precedents regarding the extent of presidential power in economic emergencies, as detailed by Reuters and The Jakarta Post.