Trade Court Blocks Trump's 'Liberation Day' Tariffs

A U.S. trade court has struck down President Donald Trump's 'Liberation Day' tariffs, ruling that he overstepped his authority by imposing blanket duties on imports from countries with trade surpluses with the United States. This Manhattan-based Court of International Trade emphasized that commerce regulation is under Congress's purview, unimpacted by the president's emergency economic powers.

The decision followed lawsuits led by Liberty Justice Center and several states, arguing that the tariffs threaten U.S. businesses, ranging from New York wine importers to Virginia educational kit producers. Oregon Attorney General Dan Rayfield criticized the tariffs as legally baseless and financially harmful, endorsing the court's decision as validation that trade policy must adhere to the law.

While the Justice Department contends the lawsuits lack standing as the duties have not yet been paid, Trump's attempt to classify the trade deficit as a national emergency was rejected in court. His tariff strategy aimed at mitigating trade deficits, primarily with China, has caused market volatility, impacting the U.S. dollar's value. The ruling is subject to appeal and could advance to higher courts.

(With inputs from agencies.)