FX.co ★ Federal Court Blocks Trump’s Tariffs Under Emergency Law

A U.S. federal trade court has issued a ruling on Wednesday preventing President Donald Trump from enacting widespread tariffs under emergency powers. The decision was made by a three-judge panel from the Court of International Trade, following several lawsuits alleging that President Trump overstepped his authority, thereby unsettling trade policies. President Trump had utilized the 1977 International Emergency Economic Powers Act (IEEPA) to justify his actions, asserting that trade deficits constituted a national emergency, thus allowing him to act without Congressional approval. However, the plaintiffs argued that the IEEPA is intended to address "unusual and extraordinary threats," a criterion they claimed is not fulfilled by a long-standing trade deficit. They highlighted that "the U.S. has maintained a trade deficit for 49 consecutive years." President Trump had previously implemented extensive tariffs worldwide, affecting countries like Canada, China, and Mexico, while citing issues such as immigration and the opioid crisis as justifications. The White House is anticipated to challenge the court's ruling through an appeal.