Twelve US states will ask a federal court on Wednesday to suspend the advertised rates by US President Donald Trump on April 2, arguing that he violated his authority by declaring a national emergency to impose tariffs on imports.
A three-judge panel of the Manhattan-based Court of International Trade will hear arguments in a lawsuit filed by the Democratic attorneys general of New York, Illinois, Oregon and nine other states. They say the Republican president has sought a “blank check” to regulate trade “at will.”
Challenge to Trump's interpretation of the law
The states allege that Trump misinterpreted legislation called the International Emergency Economic Powers Act to justify the tariffs. The law was created to address “unusual and extraordinary” threats to the United States.
Trump has said the U.S.'s decades-long history of importing more than it exports is a national emergency that has hurt American manufacturers. But the states argue that the U.S. trade deficit is not an "emergency" and that the law does not authorize tariffs at all.
The same three-judge panel heard arguments last week in a similar case. The lawsuit was filed by five small businesses. The court is expected to issue a ruling in the coming weeks.
Economic impact and local criticism
Oregon Attorney General Dan Rayfield said the tariffs are driving up prices for families. He said small businesses in the state are also being impacted. The measures, Rayfield said, are expected to cost the average family about $3,800 a year.
Rayfield said President Trump imposed his tariffs without Congressional approval. He also did not rely on public input or face any restrictions. He also claims that the courts do not have the authority to review his decisions.
“This is a misuse of emergency powers.”
The Justice Department said the states’ lawsuit should be dismissed because they alleged only “speculative economic losses” rather than actual harm caused by the tariffs. It also argued that only Congress, not the states or the courts, can challenge a national emergency declared by the president.
General tariff and judicial reaction
A spokesperson said the department “will continue to vigorously defend President Trump’s agenda to confront unfair trade practices in the courts.”
After imposing tariffs on China, Mexico and Canada in February, Trump imposed a blanket tariff of 10% on all imports in April, with higher rates for countries with which the US has the largest trade deficits, especially China.
Many of those country-specific tariffs were suspended a week later, and the Trump administration temporarily reduced the highest tariffs on China this month as it works on a longer-term trade deal.
The states’ lawsuit is one of at least seven legal challenges to Trump’s tariff policies. California, for example, has filed a separate challenge in federal court in San Francisco. Companies, legal advocacy groups and other organizations have also filed similar lawsuits.
Consequently, the parties involved can appeal the decisions of the court — which hears disputes related to international trade and customs laws — to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., and eventually to the Supreme Court.
Source: Dietrich Knauth | Notícias Agrícolas
