Federal Trade Court Halts Trump's Tariff Power Grab

A federal trade court delivered a significant rebuff to President Donald Trump on Wednesday, blocking his administration from implementing broad tariffs on imports under an emergency-powers law. The ruling, issued by a three-judge panel, highlighted the overreach in Trump's use of authority according to several plaintiffs.

This decision comes amid at least seven lawsuits challenging the tariffs, which have been a cornerstone of Trump's trade policy until now. Typically, tariffs require Congressional approval, but Trump claimed the authority to act independently, citing national trade deficits as a national emergency.

The plaintiffs argued that the 1977 International Emergency Economic Powers Act (IEPPA) does not authorize the use of tariffs, and even if it did, the trade deficit does not meet the criteria of an "unusual and extraordinary threat." This ruling marks a pivotal moment in the ongoing debate over the President's trade policies, given the U.S. has experienced trade deficits for nearly half a century.

(With inputs from agencies.)