- A federal court has blocked President Donald Trump’s sweeping tariff strategy.
- In a unanimous three-judge ruling, the court found that Trump lacks the authority to impose tariffs.
- The tariffs imposed by the Trump administration have been vacated.
A federal court on Wednesday found President Donald Trump does not have the authority to impose his sweeping tariff strategy.
The US Court of International Trade’s three-judge panel was unanimous in its ruling, declaring that the tariffs imposed by the Trump administration would be vacated.
The White House did not immediately respond to a request for comment from Business Insider.
The Constitution grants Congress the exclusive power to levy tariffs and duties. However, Business Insider previously reported that, in recent years, lawmakers have taken a less active role in doing so, instead allowing the executive branch to execute tariff policies within the guidelines defined by Congress.
Six different statutes control how the president can use tariffs. Only three carve outs allow the president to impose tariffs without a congressional investigation. Still, only one has ever been used: the International Emergency Economic Powers Act of 1977, which allows the president to declare an emergency under the National Emergency Act to regulate or prohibit imports.
It was under the IEEPA that Trump argued he had the authority to impose his tariff strategy, but the Court of International Trade disagreed.
“The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder,” the ruling read.
This is a developing story. Please check back for updates.
