Federal Court Declares Trump’s Tariffs Unlawful, Citing Economic Chaos

In a landmark decision that could reshape U.S. trade policy, a federal trade court has ruled that former President Donald Trump’s sweeping tariffs on a wide range of imported goods were unlawful. The ruling states that the administration exceeded its authority under the 1977 International Emergency Economic Powers Act (IEEPA), which Trump invoked to justify the tariffs on European imports, including vehicles, wine, and agricultural products.

The court’s decision followed multiple legal challenges from industry groups and international partners, arguing that the tariffs created significant economic disruption and violated the constitutional separation of powers. The judge noted that while the president can take emergency action to safeguard national security, declaring a trade imbalance as an “emergency” did not meet the legal threshold under the IEEPA.

The blocked tariffs had long been a centerpiece of Trump’s trade war strategy, targeting allies and rivals alike. Supporters claimed the policy helped level the playing field for American manufacturers, while critics highlighted rising consumer costs and retaliatory measures from the European Union and other partners.

Stock markets reacted favorably to the ruling, with the Dow Jones Industrial Average climbing 180 points as investors welcomed a potential return to more stable trade relations. European leaders also praised the decision, calling it a “step toward restoring trust and cooperation” with Washington.

Legal experts now believe the ruling could set a precedent, limiting the power of future presidents to unilaterally impose tariffs without Congressional approval. It may also open the door for companies that suffered under the tariffs to seek compensation.

The Biden administration, while not defending Trump’s tariffs, has yet to announce whether it will appeal the decision. Observers say the White House is likely to use the ruling to emphasize the need for a multilateral approach to trade rather than unilateral protectionism.

The ruling comes at a time of heightened political tension in Washington as the 2024 election season gains momentum. Trump’s critics have framed the court’s decision as a blow to his economic legacy, while his supporters argue it underscores the establishment’s resistance to his outsider agenda.

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