A federal court ruled on Wednesday that US President Trump does not have the right to impose extensive tariffs on imports using emergency powers.The AP reported that the decision by the three-judge panel in the International Trade Court in New York argued after several cases that Trump crossed his legal powers and created economic disruptions using the Emergency Authority to shape the US trade policy.Trump imposed tariffs on most countries, arguing that the US trade deficit formed a national emergency. He relied on the 1977 International Emergency Economic Powers Act (IEEPA) to justify tariffs, which targeted goods from countries including Canada, China and Mexico. His administration claimed that this step was necessary to combat illegal immigration and the flow of drugs in the US.However, the seven cases challenging tariffs argue that the law does not allow the use of tariffs and lack of business does not meet the need for the “unusual and extraordinary threat” of the law. The US has run a trade deficit for 49 consecutive years.Trump’s administration said the courts retained the use of the emergency tariff of the then President Richard Nixon in 1971 and argued that the Congress, not only the courts, had the right to decide whether the President’s emergency declaration fulfills the legal standards.Trump’s tariff shook the global markets and expressed concern about the US economic growth, although economists say the overall impact seems to be limited.The White House did not comment on the decision, but is expected to appeal to the Trump administration.
