US federal court blocks Trump's sweeping tariffs in legal blow to trade policy
Iran Press TV
Thursday, 29 May 2025 9:37 AM
A US federal court has ruled illegal President Donald Trump's sweeping tariffs, delivering a significant blow to one of his administration's central economic policies.
A three-judge panel at the New York Court of International Trade issued the decision following multiple legal challenges that contended Trump overstepped his presidential powers, making US trade policy subject to arbitrary presidential decisions and causing global economic instability.
While tariffs generally require congressional authorization, Trump circumvented this by claiming that the country's trade deficits amounted to a national emergency. This unprecedented justification enabled him to unilaterally impose far-reaching tariffs on nearly all US trading partners last month - a sudden decision that triggered significant market volatility.
The judicial panel emphasized they were not evaluating "the wisdom or likely effectiveness of the president's use of tariffs as leverage," but rather assessing the legality of the tariffs' implementation. As the ruling clarified, the tariffs were struck down not because such use is unwise or ineffective, "but because [federal law] does not allow it."
The ruling additionally halted a distinct series of tariffs the administration had placed on China, Mexico, and Canada - measures originally justified as combating drug trafficking and illegal immigration into the United States.
The court's decision did not, however, extend to tariffs targeting particular imports such as automobiles, steel, and aluminum, as these were authorized under separate legal provisions.
The Trump administration is expected to challenge the court's decision, with White House officials rejecting the judiciary's intervention. "It is not for unelected judges to decide how to properly address a national emergency," White House spokesperson Kush Desai told Reuters in a formal statement.
On April 2, Trump implemented a historic worldwide tariff system, introducing import duties affecting nearly all US imports.
The policy established a standard 10% tariff for most nations, while applying higher retaliatory rates to multiple countries and economic unions - including the European Union, United Kingdom, Canada, Mexico, and China.
Trump's administration says the tariffs would create manufacturing jobs at home and open up export markets abroad, though officials cautioned it would take time to see results.
Economists, however, assess that the tariffs could reignite inflation, raise the risk of a US recession, and boost costs for the average US family by thousands of dollars - a potential liability for a president who promised Americans to reduce the cost of living.
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