Inu Manak
In a major blow to President Donald Trump’s trade agenda, the U.S. Court of International Trade (CIT) ruled on Wednesday that the sweeping tariffs imposed by his administration are illegal. The decision by the New York-based court follows a series of lawsuits that argued that Trump’s so-called reciprocal tariffs exceed his presidential authority.
The CIT’s ruling affects the tariffs that Trump imposed under the International Emergency Economic Powers Act (IEEPA), which gives the president some power to regulate commerce after declaring a national emergency. It does not affect other, more specific tariffs he has imposed on commodities such as steel.
While this derails some of the Trump administration’s trade plans, it does not necessarily mean the end of its trade wars. On Thursday, a federal appeals court granted the administration’s request to pause the decision while it reviews the case, keeping the tariffs in place until at least June 9. The White House has also indicated its intention to take the case to the U.S. Supreme Court if necessary.
Much can happen while this legal drama unfolds. In the meantime, here are some of the major implications caused by the court’s ruling.
What immediate effect will this ruling have?
The CIT ordered the Trump administration to stop collecting tariffs imposed under IEEPA within ten days. Those tariffs include levies on Canada, China, and Mexico to allegedly curb illegal fentanyl trafficking, as well as Trump’s April 2 “Liberation Day” tariffs that imposed a baseline 10 percent rate on virtually all U.S. trading partners.
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