Trump’s ‘Liberation Day’ tariffs blocked by US court: Here’s what it says

A US federal court on Wednesday blocked President Donald Trump‘s proposed “Liberation Day” tariffs, citing that he exceeded his authority by attempting to impose blanket duties on imports from countries that sell more to the United States than they buy.

The Manhattan-based Court of International Trade said that the Constitution grants Congress power to regulate international commerce. But that power can’t be overruled by the president’s emergency authority to protect the economy.

The White House did not immediately respond to a message seeking comment. The Trump administration is expected to appeal.

What did the lawsuit say?

The lawsuit was filed by the nonpartisan Liberty Justice Center on behalf of five small US businesses that import goods from countries targeted by the duties; and it was first major legal challenge to Trump’s tariffs.

The companies – which range from a New York wine and spirits importer to a Virginia-based maker of educational kits and musical instruments – have said the tariffs will hurt their ability to do business.

At least seven lawsuits are challenging the levies, the centerpiece of Trump’s trade policy.

The plaintiffs argue that the 1977 International Emergency Economic Powers Act (IEPPA) does not authorize the use of tariffs.

Even if it did, they say, the trade deficit does not meet the law’s requirement that an emergency be triggered only by an “unusual and extraordinary threat.” The U.S. has run a trade deficit with the rest of the world for 49 consecutive years.

Trump’s administration says courts backed President Nixon’s emergency tariffs in 1971 and argues that only Congress—not the courts—can decide if a president’s emergency declaration is legal. Trump’s Liberation Day tariffs shook global financial markets and led many economists to downgrade the outlook for US economic growth. But so far, the tariffs have had little effect on the U.S. economy.

(With inputs from Reuters and AP)