Court blocks Trump tariffs - "Congress has exclusive authority to regulate trade with other countries"
A U.S. trade court blocked President Donald Trump's tariffs from taking effect in a sweeping ruling, arguing that the president exceeded his authority in imposing tariffs on imports from countries that sell more to the United States than they buy.
The Court of International Trade said the U.S. Constitution gives Congress exclusive authority to regulate trade with other countries that is not overridden by the president's emergency powers to protect the U.S. economy.
"The Court does not pass over the wisdom or potential effectiveness of the President's use of tariffs as leverage. This use is impermissible because federal law does not permit it," a three-judge panel said in the decision.
The Trump administration filed an appeal minutes later, questioning the court's authority. Rulings by the Manhattan-based Court of International Trade, which hears disputes involving international trade and customs laws, can be appealed to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., and ultimately to the Supreme Court.
Trump has made imposing tariffs on US importers of goods from foreign countries the central policy of his ongoing trade wars, which have disrupted global trade flows and rattled financial markets.
Companies have been hit by the rapid imposition of tariffs and unexpected changes as they seek to manage supply chains, production, staffing and pricing.
A White House spokesman said that US trade deficits with other countries constituted "a national emergency that has devastated American communities, left our workers behind and weakened our defense industrial base - facts that the court did not dispute."
The decision, if it stands, opens a giant hole in Trump's strategy to use high tariffs to extract concessions from trading partners, attract manufacturing to U.S. shores and shrink a $1.2 trillion goods trade deficit, which were among his key campaign promises.
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