The U.S. Court of International Trade has ruled that former President Donald Trump overstepped his authority by imposing tariffs on various countries. This decision is a significant setback for his administration’s economic policies.
The court’s unanimous ruling highlights two legal principles: the major questions doctrine and the nondelegation doctrine. These principles support a more limited interpretation of the International Emergency Economic Powers Act (IEEPA). As a result, the court ordered that the tariffs imposed under this act will be suspended. Additionally, the government may need to refund tariffs that have already been collected.
The court stated that the "Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs." It also emphasized that any interpretation of the IEEPA that allows for unlimited tariff authority is unconstitutional.
Importantly, this ruling does not impact tariffs set under other laws, such as those on steel and aluminum under the Trade Expansion Act of 1962.
This decision adds to a series of legal challenges faced by the Trump administration. Throughout his presidency, many policies have been contested in court, and the administration is likely to encounter a record number of nationwide injunctions during its second term.
The Department of Justice plans to appeal this ruling, indicating that the legal battle over tariffs is far from over.