A federal trade court on Wednesday blocked President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law.
The ruling from a three-judge panel came after several lawsuits arguing Trump has exceeded his authority, left U.S. trade policy dependent on his whims and unleashed economic chaos.
At least seven lawsuits are challenging the levies, the centerpiece of Trump’s trade policy.
Tariffs must typically be approved by Congress, but Trump has says he has the power to act because the country’s trade deficits amount to a national emergency. He imposed tariffs on most of the countries in the world at one point, sending markets reeling.
The plaintiffs argue that the 1977 International Emergency Economic Powers Act (IEPPA) does not authorize the use of tariffs.
Even if it did, they say, the trade deficit does not meet the law’s requirement that an emergency be triggered only by an “unusual and extraordinary threat.” The U.S. has run a trade deficit with the rest of the world for 49 consecutive years.
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