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An unprecedented decision by a lesser-known Manhattan court has dramatically weakened President Trump's central economic strategy, leaving him facing intense backlash.
In addition to undermining his economic policies, the ruling exacerbates the tension between the administration and the judiciary, fueling the country’s deepening constitutional crisis.
Tariffs are a cornerstone of Trumps economic platform. They serve as the tools through which he has sought to assert global economic control and are central to his “art of negotiation”.
We remember the dramatic “Liberation Day” on 2 April. Trump announced wide-ranging tariffs, inciting immediate global reaction from many governments and markets.
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<span class="ui-media-caption__caption-text" data-role="caption-text">How Liberation Day unfolded</span>
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This marked a seismic shift in global trade, sending economies and markets into turmoil.
Following this, a panel of three judges on the US Court of International Trade ruled all tariffs to be unlawful and mandated their permanent removal.
After Liberation Day, numerous lawsuits contested the president’s ability to impose tariffs without congressional approval. This marking the first federal court ruling against him.
The US Constitution dictates that only Congress, not the president, has the authority to levy taxes. However, Congress permits the president to impose tariffs unilaterally for national security reasons, a provision Trump invoked on Liberation Day.
He justified his tariffs by declaring a “national economic emergency” and invoking the 1977 International Emergency Economies Powers Act (IEEPA).
He asserted this gave him presidential authority to address economic issues, with tariffs being the solution.
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<span class="ui-media-caption__caption-text" data-role="caption-text">How Trump's tariffs are biting</span>
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The court, which included judges appointed by Ronald Reagan, Barack Obama, and Donald Trump, ruled that his executive orders are “invalid, as contrary to law”.
The ruling explicitly stated, “We do not read the IEEPA to delegate an unbounded tariff authority to the president.” It also highlighted that Trump’s global and retaliatory tariffs “lack any identifiable limits”.
These limits, according to the judges, mean the president does not have the authority to impose tariffs. The court concluded the IEEPA allows for tariff imposition only in response to declared national emergencies.
The ruling impacts tariffs on China, Mexico, and Canada, which were imposed to combat fentanyl entering the United States.
This decision will intensify tensions between Trump’s administration and the judiciary, which has consistently challenged various aspects of his presidency by finding his actions contrary to the law and the Constitution.
Following the ruling, senior White House staff reacted instead of dismissing it. Deputy chief of staff Stephen Miller referred to it as a “constitutional crisis” on social media.
In response, White House spokesperson Kush Desai stated that unelected judges should not dictate how to handle national emergencies. He emphasized that Trump’s administration is committed to using all available executive powers to address this issue and restore American greatness.
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Source: https://news.sky.com/story/trumps-key-economic-policy-has-just-been-undermined-and-the-president-will-be-seething-13376252
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