Trump under pressure: Court declares tariffs illegal – what now?

Trump under pressure: Court declares tariffs illegal – what now?

In a landmark ruling on Wednesday, the US Federal Court of International Trade declared Donald Trump's sweeping tariffs illegal. This decision represents a significant setback to the former president's aggressive trade policy. The Court found that Trump's tariff policy exceeded his authority and that the decision to impose tariffs falls within the purview of the US Congress.

The justices found that Trump improperly invoked the International Emergency Economic Powers Act (IEEPA) of 1977 to justify the tariffs. Although this text of the law allows the president to act in cases of national threats, it was decided that the situation on which Trump relied did not constitute a national emergency. Therefore, the tariffs are considered illegitimate, particularly those imposed on China, Canada and Mexico, as they are unrelated to the alleged threats.

The context of tariffs

The tariffs were introduced as part of Trump's strategy to reduce the U.S. trade deficit, which he viewed as a national emergency. On April 2nd of this year, Trump imposed a so-called “tariff salvo” that created great uncertainty in the economy. Business leaders express different economic expectations about the impact of these tariffs, which are now called into question by the ruling.

Various business associations and 12 states had sued against the tariffs. The justices emphasized that the president does not have absolute authority and that Congress has the sole right to set trade tariffs. While the White House has already announced that it will appeal the ruling and continue to declare trade deficits a national emergency, a spokesman for Trump's staff described the decision as a "judicial coup."

Reactions and outlook

The ruling is seen by many as a victory for working families and small business owners. Oregon's attorney general applauded the decision for reducing the economic burden of the unlawful tariffs. However, it is important to note that tariffs not based on the IEEPA, such as tariffs on steel, aluminum, and foreign vehicles, will remain in place.

The future of US trade policy therefore remains uncertain. Trump continues to work on trade deals with the EU and China to achieve possible concessions. The reactions in the economy and the uncertainties surrounding trade policy show how crucial these developments are for the economic landscape of the USA.

For more information on this topic, see the articles from the standard and taz.