The US Manhattan federal court has blocked President Donald Trump's Liberation Day tariffs, calling them unconstitutional. The court said that Trump violated constitutional rights and this action is not in accordance with the US Constitution. The court termed it as a step taken for political gains.
The Trump administration in the United States has faced another significant setback, this time due to a ruling by a US court that has prohibited the 'Liberation Day' tariff introduced by President Donald Trump. The Manhattan Federal Court has declared the tariff unconstitutional and blocked its implementation.
According to the judgment by a three-judge panel from the Manhattan-based Court of International Trade, Trump violated constitutional rights and acted in a manner inconsistent with the US Constitution. Although the Trump administration had associated the policy with patriotism, the court described it as a move made for political advantage. Here is the full story.
What was the 'Liberation Day' tariff?
In April, the Trump administration revealed the implementation of significant tariffs on imports from countries that purchase fewer goods from the US but export more. This was termed the 'Liberation Day' tariff. The move was intended to decrease the trade deficit, though it faced legal challenges from American businesses and multiple state governments.
The court made it clear that under the US Constitution, it is Congress, not the President, that holds the power to determine foreign trade policy. Additionally, the court stated that the tariffs implemented by Trump do not qualify as a response to any genuine emergency. Trump's decision has resulted in economic turmoil. The judges noted, "The President's action to impose tariffs, which lack any time or scope constraints, exceeds legal authority." The IEEPA (International Emergency Economic Powers Act) does not grant Trump such unrestricted power.
The Trump administration referred to the year 1971 when President Richard Nixon implemented tariffs during an emergency, which were sanctioned by the court. Trump's legal team argued that it was Congress's role, not the court's, to decide on the legality of an emergency declaration. However, the court dismissed this claim, stating that the judiciary also has the duty to impose restrictions on such powers.