The US Court of International Trade has blocked the implementation of a large-scale tariff plan initiated by President Donald Trump. The court concluded that Trump exceeded his authority when he imposed blanket tariffs on imports from countries that have a positive trade balance with the US — meaning they sell more than they buy. About this informs Reuters.
The Court of International Trade stated that under the Constitution, the power to regulate foreign trade rests exclusively with Congress, and that power cannot be limited even by the president’s emergency powers to protect the economy.
The lawsuit was filed by an organization on behalf of five small American firms that purchase goods from countries subject to the new tariffs. The lawsuit was the first large-scale legal challenge to the Trump administration’s tariff policies.
The plaintiffs include companies from a variety of industries, including a New York-based wine and spirits importer and a Virginia-based manufacturer of educational kits and musical instruments. They believe that the introduction of new duties will seriously harm their business. The case is one of seven legal initiatives aimed at challenging Trump’s tariff policy. Lawsuits were also filed by 13 US states and a number of small business associations.
It will be recalled that on April 2, Trump announced the introduction of tariffs on imports from 185 countries and territories. He stated that the minimum rate for imported goods will be 10%. A duty of 20% is introduced for goods from the European Union, and 34% for products from China. Some countries received separate, individually set tariffs.
