US court blocks Trump tariffs, says he exceeded authority under 1974 Trade Law

A US federal trade court has struck down President Donald Trump’s latest global tariff move, ruling that his administration exceeded its authority under a 1974 trade law while attempting to impose a 10% import surcharge on goods entering the United States.

In a 2–1 decision, the US Court of International Trade said the White House could not justify the tariffs under Section 122 of the Trade Act of 1974, which allows temporary import surcharges in specific “balance-of-payments” crisis situations.

Judges Mark A. Barnett and Claire R. Kelly wrote that the administration failed to meet legal requirements, stating the proclamation “fails to assert that those required conditions have been satisfied”.

The court added that the law was never intended to cover modern trade deficits. “Rather than identifying ‘balance-of-payments deficits’ as that term was intended in 1974, the Proclamation relies upon current account deficits,” the majority opinion said.

The ruling warned that accepting the government’s broader interpretation would effectively give presidents unchecked tariff powers. “Such an expansive reading of the statute would raise a non-delegation issue,” the judges noted.

Trump imposed the tariffs in February after earlier tariff measures were struck down by the Supreme Court. The new duties were issued under Section 122, which allows temporary tariffs of up to 15 per cent for 150 days.

The court sided with two importers and the State of Washington, while dismissing claims from several other states on procedural grounds.

Dissenting, judge Timothy Stanceu argued the court should not override presidential economic judgment or narrowly define trade deficit calculations.

The ruling is expected to be appealed to the US Court of Appeals for the Federal Circuit and could eventually return to the Supreme Court.

With IANS inputs