The US Court of International Trade blocked most of US President Donald Trump’s reciprocal tariffs, stating that he exceeded his authority by imposing them unilaterally on multiple countries.
A panel of three judges ruled Wednesday that although the president has the power to impose emergency tariffs, the International Emergency Economic Powers Act (IEEPA), which Trump used to invoke the levies, does not authorize a president to place universal duties on imports. Rather, that power is in the hands of the US congress.
“Worldwide and Retaliatory Tariffs do not comply with the limitations congress imposed upon the president’s power to respond to balance-of-payments deficits,” the ruling said. “The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the president by IEEPA to regulate importation by means of tariffs.”
The judging panel also ordered a permanent halt to the tariffs, giving the US government 10 days to issue new orders reflecting the panel’s decision.
Trump first announced tariffs in April, before pausing most for a 90-day period of negotiations with other countries. The tax threat had a major impact on the diamond and jewelry industry, leaving diamond sales at a standstill amid the trade’s caution. Miners postponed rough tenders, while jewelers were worried about price hikes from vendors, and others experienced a spike in sales as vendors rushed to place orders before the levies set in. Many industry members admitted they were concerned about the impact of tariffs, but were still hesitant to adjust their businesses. Meanwhile, trade organizations went to bat for diamonds, hoping to get an exemption from the government.
The Trump administration filed a notice of appeal following the ruling, questioning the court’s authority on the matter.
“Foreign countries’ nonreciprocal treatment of the US has fueled America’s historic and persistent trade deficits,” the White House statement said. “These deficits have created a national emergency that has decimated American communities, left our workers behind, and weakened our defense industrial base — facts that the court did not dispute. It is not for unelected judges to decide how to properly address a national emergency.”
Image: A shipping container. (Shutterstock)
