Legal Challenges Emerge Against Trump’s Tariff Policy
WASHINGTON (AP) — In a bold and controversial move, President Donald Trump has launched a trade war without congressional approval by declaring a national emergency and imposing import taxes—known as tariffs—on nearly every country globally.
Growing Legal Battles
As a result of these tariffs, Trump now faces at least seven lawsuits claiming he has overstepped his authority. On Tuesday morning, a three-judge panel from the U.S. Court of International Trade convened in New York to hear challenges from five small businesses advocating for a block on the expansive import taxes announced on April 2, which Trump dubbed “Liberation Day.”
Emergency Declaration and Tariff Details
Trump justifies these tariffs by citing the persistent and significant trade deficits America faces, labeling them as a national emergency. Utilizing the 1977 International Emergency Economic Powers Act (IEPPA), he imposed a 10% tariff on a wide range of imports, and unilateral increases up to 50% on countries exporting more to the U.S. than they import from it. Although these higher tariffs were suspended for 90 days, their initial implementation rattled global markets, heightening fears of widespread economic disruption.
Legal Arguments Against the Tariffs
Jeffrey Schwab, senior counsel at the nonprofit Liberty Justice Center representing the affected businesses, argued that Trump is exceeding the authority granted by IEPPA, which does not explicitly mention tariffs. “That statute doesn’t actually say anything about giving the president the power to tariff,” Schwab asserted. The businesses involved in the lawsuit referred to Trump’s declared emergency as a “figment of his own imagination,” highlighting that trade deficits have persisted for decades without causing significant economic harm.
Historical Precedents and Responses
In defense of his actions, the Trump administration points to historical precedents, citing President Richard Nixon’s tariff emergency during a 1971 economic crisis, which was validated by the courts under the 1917 Trading With Enemy Act. However, legal analysts maintain that the legitimacy of Trump’s tariffs could lead to a major legal showdown, potentially reaching the Supreme Court for final determination.
Bipartisan Legal Alliances
The opposition to Trump’s tariffs has united unlikely allies, bringing together states led by Democratic governors and libertarian groups like the Liberty Justice Center. To date, a dozen states have filed lawsuits challenging the tariffs in the New York trade court, one of which is also scheduled for a hearing on May 21.
Calls for Congressional Oversight
With tensions growing over the executive branch’s expansive trade policy, some lawmakers are moving to reclaim authority over tariff impositions. Senators Chuck Grassley (R-Iowa) and Maria Cantwell (D-Washington) have introduced legislation requiring presidents to justify new tariffs to Congress, allowing lawmakers 60 days to approve them or see the tariffs expire. However, given the prevailing support for Trump among Republican lawmakers, the proposal’s chances of becoming law seem slim. As trade lawyer Warren Maruyama noted, “That train has left the station.”
Impact on American Businesses
Currently, American businesses are grappling with the repercussions of Trump’s tariffs, which have pushed the country’s average tariff rates to their highest levels since 1934. Victor Schwartz, an importer with nearly four decades of experience in sourcing wine and spirits from small producers around the world, voiced concerns over the tariffs’ impact on his business, V.O.S. Selections. “It’s a race against time,” he remarked. “Will we get through it? I’m not sure exactly.”
