US Court Limits Presidential Power on Tariffs
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Ruling states president exceeded authority by invoking economic emergency law to impose duties.
The United States International Commercial Court (ITC) has ruled that the president exceeded constitutional powers when invoking an economic emergency law to impose tariffs.
The court’s judgment, published Wednesday, May 28, addressed customs duties imposed on products entering the United States. These duties, championed by President Donald Trump, were deemed to be within the sole purview of Congress.
According to the ITC, the president could not use the 1977 economic emergency law to justify presidential decrees that instituted these customs duties. The court stated this law does not allow the president to “impose an unlimited surcharge on products from almost all countries,” according to the ruling.
“Contrary to the American Constitution”
“Delegation without limit of the authority in matters of customs duties would constitute a renunciation of legislative power.”
The judges stated that the decrees issued on April 2, which imposed a minimum 10% tariff on all incoming products, with rates up to 50% depending on the country of origin, “overlaps the powers granted to the president in the context of the IEEPA law” (International Emergency Economic Powers Act) to regulate imports via customs duties.
In a written opinion, one of the judges argued that “delegation without limit of the authority in matters of customs duties would constitute a renunciation of legislative power for the benefit of another branch of the government,” which is contrary to the American Constitution. The court emphasized that “the IEEPA allows the president to take the necessary economic sanctions in the event of an emergency to fight a threat ‘extraordinary and unusual.'”
Frequently Asked Questions
What is the IEEPA?
The International Emergency Economic Powers act (IEEPA) is a 1977 US law authorizing the President to regulate international commerce during a declared national emergency.
Why did the court limit the president’s power?
The court ruled that the president’s broad imposition of tariffs exceeded the authority granted by the IEEPA and encroached on Congress’s power to regulate commerce.
What was the minimum tariff imposed?
The presidential decree imposed a minimum tariff of 10% on all incoming products.
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