Federal court blocks Trump's tariffs imposed under emergency powers

A federal court ruled on Wednesday that US President Trump does not have the authority to impose broad tariffs on imports using emergency powers.

The decision, delivered by a three-judge panel at the Court of International Trade in New York, came after several lawsuits argued that Trump exceeded his legal powers and caused economic disruption by using emergency authority to shape US trade policy, reported AP.

Trump had imposed tariffs on most countries, arguing that the US trade deficit constituted a national emergency. He relied on the 1977 International Emergency Economic Powers Act (IEEPA) to justify the tariffs, which targeted goods from countries including Canada, China, and Mexico.

His administration claimed the move was necessary to combat illegal immigration and the flow of drugs into the US.

However, the seven lawsuits challenging the tariffs argue that the law does not permit the use of tariffs and that trade deficits do not meet the law’s requirement of an "unusual and extraordinary threat." The US has run a trade deficit for 49 consecutive years.

Trump’s administration contends that the courts upheld the then-President Richard Nixon’s use of emergency tariffs in 1971 and argues that only Congress, not the courts, has the authority to decide whether a president’s emergency declaration meets legal standards.

Trump’s tariffs shook global markets and raised concerns about US economic growth, though economists say the overall impact appears to have been limited.

The White House did not comment on the ruling, but the Trump administration is expected to appeal.