President Trump does not have the authority to impose broad tariffs on imports, a federal court ruled Wednesday, rejecting the argument that the 1977 International Emergency Economic Powers Act gives him that power. The US Court of International Trade had been asked to issue an injunction in the case involving lawsuits trying to block the tariffs. Instead, the three-judge panel skipped directly to issuing a judgment, Axios reports. The emergency legislation, the judges ruled, does not authorize any of the "Worldwide, Retaliatory or Trafficking" orders, adding, "the challenged Tariff Orders will be vacated and their operation permanently enjoined."
The unanimous decision applies to the 10% "Liberation Day" tariffs Trump slapped on all foreign products on April 2, as well as the higher levies on goods coming from several dozen nations. Ruling on two cases at once, the court ordered that the tariffs already collected also be vacated, per Politico. At least seven lawsuits challenging the tariffs have been filed. White House aides had said before the ruling that the decision would be appealed if it went against the administration, per the Washington Post. The case could well go to the Supreme Court, per the New York Times, but if the ruling stands, it could be the end of Trump's trade war.
Tariffs usually need congressional approval, but Trump maintains he has the authority now because the US trade deficits are so high they constitute a national emergency, per the AP. The law does not say the president can use tariffs to protect the nation from economic threats, per the Times, but Trump invoked it anyway. One of the panel's judges was appointed by Ronald Reagan, one by Barack Obama, and one by Trump. (More President Trump stories.)