A three-judge panel of the U.S. Court of International Trade ruled late Wednesday that President Donald Trump does not have the authority under economic emergency legislation to impose sweeping global tariffs.
The ruling, at least temporarily, requires the administration to remove tariffs imposed on Canada, Mexico and China — the three largest buyers of U.S. agricultural products. The Trump administration immediately stated it plans to appeal the ruling to the U.S. Court of Appeals for the Federal Circuit.
Trump imposed tariffs under the 1977 International Emergency Economic Powers Act, or IEEPA, but the court ruled “IEEPA does not authorize any of the worldwide, retaliatory, or trafficking tariff orders.” The court ruled such tariffs would have to be imposed by Congress, not the president.
The ruling also does not affect specific tariffs on steel, aluminum and imported automobiles issued under a separate law.
The court blocked Trump’s global 10% tariffs on nearly every country that he imposed on April 2, which he dubbed “Liberation Day.” Higher tariffs set for a range of countries that day were also announced but delayed until July except for a 10% tariff placed on products from China.
The ruling also blocks 25% tariffs Trump had imposed on Canada and Mexico over border security and fentanyl trafficking, as well as another 20% tariff on most products from China.
Effectively, the court’s order removes a 30% tariff on China by blocking both sets of tariffs. Trump had declared tariffs on China would go as high as 145% but those were never set in place.
In announcing Liberation Day, Trump said at the time that his tariff policies “are standing up for farmers and ranchers” who are “brutalized by nations.”
The court said, “The worldwide and retaliatory tariff orders exceed any authority granted to the president by IEEPA to regulate importation by means of tariffs. The trafficking tariffs fail because they do not deal with the threats set forth in those orders. This conclusion entitles plaintiffs to judgment as a matter of law; as the court further finds no genuine dispute as to any material fact, summary judgment will enter against the United States.”
Stephen Vaden, President Trump’s nominee to be Agriculture deputy secretary, sits on the International Trade Court, but he was not one of the judges who considered this case. The three judges who issued the ruling were Gary Katzmann, Timothy Reif and Jane Restani.
The case was brought by five small businesses including V.O.S. Selections, a New York liquor firm, and other small businesses with support from Liberty Justice Center, a conservative legal organization. Twelve states led by Democratic governors also sued.
Farm groups and agribusinesses have expressed concerns that Trump’s tariffs on goods imported to the United States would lead to retaliation against U.S. products.
Kush Desai, a White House spokesman, sharply rebuked the court for its ruling, saying in a statement that unfair trade relationships had “decimated American communities, left our workers behind and weakened our defense industrial base — facts that the court did not dispute,” The New York Times reported.
As of early Thursday, Trump had not issued any statement or posted on social media about the court’s decision.
Trump “might still be able to temporarily launch import taxes of 15% for 150 days on nations with which the U.S. runs a substantial trade deficit,” the Associated Press said. “The ruling notes that a president has this authority under Section 122 of the Trade Act of 1974.”
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DTN
I’m not informed enough to say how the tariff issue is effecting the other red meat business however the 10% on import Lamb has gone like this. The first hit was in the producer arena, The sale Barn, then the dust settled and numbers are short and the current fat Lamb price is $1.85. That squared things up pretty fast which leaves us to the issue of Distribution of USA Lamb. Time to think about it, EAT AMERICAN LAMB.
Dave McEwen