US Court Rejects Trump Tariff Order, Says Trade Law Was Misused

A federal trade court in the United States has ruled against President Donald Trump’s latest tariff action, saying the administration exceeded the powers granted under a decades-old trade law while introducing new import duties.

The US Court of International Trade, in a 2-1 decision, held that the White House could not justify a 10 per cent tariff surcharge by citing broad trade and current account deficits under Section 122 of the Trade Act of 1974.

According to the majority ruling, the law originally addressed specific balance-of-payments emergencies linked to the international monetary system of the 1970s. The court said the provision does not address modern trade imbalances.

Judges Mark A Barnett and Claire R Kelly said the administration failed to demonstrate that the legal conditions required under the statute had been met.

Trump introduced the tariff measure in February after the Supreme Court struck down an earlier tariff framework. His administration had imposed the earlier policy under emergency economic powers legislation.

Section 122 allows the US President to impose temporary import surcharges of up to 15 per cent for a maximum period of 150 days.

The court, however, said the administration relied on general trade deficits instead of the narrower balance-of-payments criteria intended by Congress.

The judges also warned that accepting the administration’s interpretation could effectively grant unlimited tariff powers to future presidents. They said such an approach could raise constitutional concerns over excessive executive authority.

The ruling favoured importers Burlap and Barrel and Basic Fun, along with the State of Washington, which had challenged the tariffs in court.

Several other Democratic-led states failed to move forward with their claims because of standing-related issues.

Judge Timothy Stanceu disagreed with the majority opinion. He argued that the judiciary should not narrowly interpret economic assessments made by the President.

The parties will likely appeal the decision before the US Court of Appeals for the Federal Circuit. The matter could eventually return to the Supreme Court.

Trump defended the use of Section 122 after a court blocked his earlier tariff programme. He described the provision as one of several strong alternatives available to his administration.

The ruling has intensified debate over presidential authority on trade policy. Critics argued that tariff powers constitutionally belong to Congress rather than the executive branch.

Senate Republican leader Mitch McConnell had earlier criticised the use of emergency-style powers to impose tariffs without congressional approval. He called the move unlawful.

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