Trump’s Entire Tariff Endeavor Ruled Illegal by U.S. Court of International Trade

Tony Romm and Ana Swanson, reporting for The New York Times (paywall-busting gift link):

A panel of federal judges on Wednesday blocked President Trump from imposing some of his steepest tariffs on China and other U.S. trading partners, finding that federal law did not grant him “unbounded authority” to tax imports from nearly every country around the world.

The ruling, by the U.S. Court of International Trade, delivered an early yet significant setback to Mr. Trump, undercutting his primary leverage as he looks to pressure other nations into striking trade deals more beneficial to the United States.

Before Mr. Trump took office, no president had sought to invoke the International Emergency Economic Powers Act, a 1977 law, to impose tariffs on other nations. The law, which primarily concerns trade embargoes and sanctions, does not even mention tariffs.

But Mr. Trump adopted a novel interpretation of its powers as he announced, and then suspended, high levies on scores of countries in April. He also used the law to impose tariffs on products from Canada and Mexico in return for what he said was their role in sending fentanyl to the United States.

On Wednesday, the Court of International Trade, the primary federal legal body overseeing such matters, found that Mr. Trump’s tariffs “exceed any authority granted” to the president by the emergency powers law. Ruling in separate cases brought by states and businesses, a bipartisan panel of three judges essentially declared many, but not all, of Mr. Trump’s tariffs to have been issued illegally.

Enough with the euphemisms. “Novel interpretation” is shorthand for “bullshit mad-king fantasy stuff”. Paul Krugman, on his blog (which he really should move away from Substack):

The thing is, it has been obvious all along that Trump’s use of the 1977 International Economic Emergency Powers Act to justify Smoot-Hawley level tariffs was a massive abuse of power. I mean, since when are 4 percent unemployment and 2.5 percent inflation an emergency justifying the reversal of 90 years of policy? But I guess I just assumed that things like that didn’t matter anymore.

Look past the bluster and Trump is getting his ass kicked left and right. Every organization — universities, law firms, computer makers — that’s been hesitant to just call his nonsense nonsense and his bullshit bullshit should put their big boy pants on and stand up. The whole thing is falling apart. The system might actually still work. But everyone needs to make their choice known: courage or cowardice?

★ Thursday, 29 May 2025