The Federal Court of Commerce of States United canceled i duties imposed by the President Donald Trumpcalling them illegitimate. The decision is a heavy blow to the tariff strategy carried out by Trump, who had used the 1977 law “International Emergency Economic Powers Act” to justify these measures. The law, designed to manage real national emergencies, does not provide for the power to impose unlimited duties. According to the judges, the White House would therefore have overcome its skills, narrowing an area that is up to the congress exclusively.
The Court judged three specific executive orders of Trump as beyond the legal limits. Among these, those who imposed growing duties on imports from countries such as Mexico and Canada – motivated as part of A plan against drug trafficking – and those involving numerous world commercial partners. The judges clarified that these emergencies, such as the deficit in commercial exchanges or drug trafficking, do not satisfy the extraordinary urgent criteria required by the law of 1977. They also stressed that the regulation of global trade remains the responsibility of the congress.
The reaction of the White House: Ira and appeal
The sentence was angrily accepted by the Trump Administration. Stephen Miller, deputy head of the White House staff, defined the decision “a coup d’état out of control ”. The spokesman for the White House, Kush Dessaisaid that “it is not up to unleashed judges to decide how to adequately deal with a national emergency”. The administration has already announced that it will appeal, and the case could go up to the Supreme Court, where you are on nine judges are of conservative orientation, including three appointed by Trump himself.
Impacts on markets and international politics
A significant legal previous
The appeals that led to the sentence were presented by several actors: a group of companies led by the Vinicolo Vosi selections importer and by several American states governed by the Democratic Party, including New York and Oregon. The Attarney General in New York, Lettitia Jamessaid: “No president has the power to raise taxes alone when he wants”. According to experts, the decision could represent an important legal precedent with lasting implications on the balance of powers in the United States. The congress could regain a key role in commercial policy decisions, limiting the president of the president regarding duties and economic sanctions.
The future of the American tariff strategy
While the appeal prepares the land for a possible clash to the Supreme Court, the verdict of the Federal Court of Commerce marks a significant stop to the approach adopted so far by the Trump Administration. The commercial negotiations started in recent monthsoften implemented under the threat of tariff penalties, they could now get stuck. Obviously, the momentarly frozen rates could return in force in the event of reversing the sentence in the subsequent degrees of judgment.
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