Two federal courts block tariffs imposed under emergency law

The U.S. Court of International Trade May 28 blocked a series of tariffs issued by the Trump administration under the International Emergency Economic Powers Act, a law granting the president authority to regulate various economic transactions following the declaration of a national emergency. The enjoined tariffs include the 10% universal tariffs for all countries and reciprocal tariffs on certain countries with which the U.S. has high trade deficits that were announced April 2. The court order also blocks tariffs imposed on Canada, Mexico and China in February that were based on concerns about illicit fentanyl trafficking. Tariffs imposed under other authorities such as Section 232 tariffs on steel and aluminum imports remain in place and were not impacted by yesterday’s ruling.

The Trump administration immediately filed a notice in the U.S. Court of Appeals for the Federal Circuit indicating that it will appeal this decision. The appeals court May 29 granted a temporary stay pending the appeal.

A second federal district court May 29 also found the Trump administration’s tariffs to be unlawful. The U.S. District Court for the District of Columbia held that IEEPA does not address tariffs at all and therefore does not grant the president the authority to impose such levies. The court issued a preliminary injunction against all tariffs imposed under the IEEPA. The administration is also expected to appeal this decision.