Credited from: THEJAKARTAPOST
A federal court has ruled that President Donald Trump exceeded his authority by imposing sweeping "Liberation Day" tariffs under the International Emergency Economic Powers Act (IEEPA). The Court of International Trade found that the law does not grant the president the power to impose such broad tariffs without Congressional approval, which raises significant questions about the legality of Trump's trade strategy. This legal challenge follows several lawsuits from businesses and states asserting that the tariffs disrupt the economy and violate the separation of powers, according to SCMP, Indiatimes, and ABC News.
Following the ruling, Trump officials have launched an appeal while emphasizing that they would explore alternative methods to maintain tariffs. The appeals court granted a temporary stay on the enforcement of the decision, allowing the tariffs to remain in effect while the case is under review. This decision means that Trump's appetite for tariffs still has legal grounds, albeit clouded by uncertainty, as experts predict the battle over these tariffs could reach the Supreme Court, according to Channel News Asia and NY Times.
The legal victories for the plaintiffs underscore the challenges the Trump administration faces in justifying its aggressive tariff regime, made under claims of a national economic emergency. Experts highlight that if upheld, these court decisions could force a significant revision of Trump's trade policy, which relies heavily on tariffs for negotiating better terms with international trading partners, implying a drastic shift in U.S. trade relations, as stated in BBC and Le Monde.
As the legal fight unfolds, the administration is also reviewing avenues to impose tariffs without resorting to the IEEPA. Strategies include invoking other sections of U.S. trade law that allow for limited tariffs amid balance-of-payments emergencies. The unfolding scenario casts a long shadow over the economic landscape as Wall Street and international partners watch closely how these legal challenges may redefine U.S. trade strategies moving forward, according to CBS News and NY Times.