The U.S. federal court has put the brakes on the mutual tariff implementation by former President Donald Trump's administration.
According to Reuters and others on the 28th (local time), the U.S. Court of International Trade ruled that the mutual tariffs of the Trump administration exceeded the government's authority.
The court stated, "The court does not interpret the International Emergency Economic Powers Act (IEEPA) as granting unlimited authority to the government," calling it an "unprecedented power grab."
The International Emergency Economic Powers Act, enacted in 1977, grants the president the authority to take various measures without congressional approval if a national emergency is declared in response to "abnormal and special threats" related to national security, diplomacy, or the economy.
Earlier, five corporations based in the U.S. filed a lawsuit last month, stating that President Trump illegally enacted tariff policies without going through Congress, which holds the power to decide on tariffs. They claimed in their complaint that President Trump arbitrarily interpreted the International Emergency Economic Powers Act to impose tariffs without authority.
President Trump used the International Emergency Economic Powers Act, arguing that the U.S. trade deficit constitutes a national emergency. He is the first president to utilize this law as a basis for imposing tariffs, and controversies regarding the legality started immediately after the tariffs were introduced.
This ruling is the first judgment by a federal court regarding Trump’s tariff measures. As a total of 12 states, including New York, have filed lawsuits requesting the cessation of the Trump administration's tariff policy in the same court last month, it is highly likely that further judicial decisions regarding tariffs will follow.
The Trump administration has expressed its intention to appeal. The White House criticized the ruling as a "runaway judicial coup."
Meanwhile, a bipartisan effort is underway in the U.S. Congress to push the Trade Review Act, which requires congressional approval for the implementation of presidential tariffs. According to NBC News, the bill stipulates that the president must submit an analysis of the reasons for imposing tariffs and the impact on U.S. consumers and corporations to Congress within 48 hours of imposing new tariffs, and Congress must approve the tariffs within 60 days.