WASHINGTON – President Donald Trump can collect tariffs while states and small businesses continue to fight to overturn the taxes on worldwide imports, under a federal appeals court decision.
A three-judge panel of the U.S. Court of International Trade ruled May 28 that Trump exceeded his authority under the International Emergency Economic Powers Act by imposing the tariffs to combat what he cited as “unusual and extraordinary threats” during national emergencies.
But the U.S. Court of Appeals for the Federal Circuit on June 10 put that decision on hold while the case is litigated. The court’s 11 judges will hear full arguments because of the case’s “exceptional importance.” The judges asked both sides to develop an expedited schedule to complete the case.
“A great and important win for the U.S.,” Trump said on social media.
Trump has imposed tariffs on the country’s largest trading partners – Mexico, Canada and China – and a slew of other countries. He aimed to reduce trade deficits and said the proceeds from tariffs would reduce the federal deficit while manufacturers would bring jobs back to the U.S.
The appeals ruling came in a pair of lawsuits. One was filed by the nonpartisan Liberty Justice Center on behalf of five small U.S. businesses that import goods from countries targeted by the duties. The other was by 12 states.
Trump has claimed broad authority to set tariffs under the 1977 emergency law that previously was used to impose sanctions or freeze assets of U.S. enemies.
But Trump said February tariffs on Mexico, Canada and China were to fight fentanyl trafficking. He imposed sweeping tariffs on other trading partners April 2 to combat the U.S. trade deficit in which the United States buys more from other countries than it sells them. He announced on May 30 he would double the tariff on steel to 50%.
The tariffs prompted countries to negotiate individual trade deals with the U.S. The United Kingdom reached an agreement and China continues to negotiate. Administration officials say dozens more potential deals are in the works.
But retailers have complained the tariffs are driving up prices and forcing them to cut jobs.
At least five other court cases have challenged Trump’s justification for tariffs under the emergency economic powers act.
A federal district court also blocked the tariffs May 29 for an Illinois toy importer but that case involved only that business. The Trump administration has appealed the decision.
This article originally appeared on USA TODAY: Court ruling gives Trump a win on tariffs while appeal plays out
