On May 28 local time, a ruling by a US federal court caused a stir in the domestic political and economic fields. The court prevented the tariff policy announced by US President Trump on April 2 from taking effect and ruled that Trump had exceeded his authority. The White House responded promptly. Stephen Miller, the deputy chief of staff of the White House, stated directly on social media: “The judicial coup has gotten out of control.”
This ruling comes from the International Trade Court located in Manhattan, New York. The court made it clear that the US Constitution grants the US Congress exclusive powers to regulate trade with other countries. Although the president claims to exercise emergency powers to protect the US economy, this does not override the trade regulation powers of Congress. The lawsuit was filed by the Center for Free Justice, a non-profit, nonpartisan litigation organization in the United States, on behalf of five small American businesses affected by tariffs. This is also the first major legal challenge to Trump’s tariff policy.
Looking back at Trump’s tariff policy, on April 2nd, he signed an executive order at the White House regarding the so-called “reciprocal tariffs”, announcing that the United States would impose a 10% “minimum benchmark tariff” on its trading partners and impose higher tariffs on certain trading partners. Trump also referred to April 2nd as the “Liberation Day” of the United States. However, this policy has sparked much controversy since its introduction. Not only have many countries taken countermeasures in response, but there have also been complaints within the United States.
Previously, on April 30, the US Chamber of Commerce, on behalf of over 3 million businesses and organizations across the United States, sent a letter to the Trump administration, urging it to immediately implement a “tariff exemption mechanism” to prevent the US economy from falling into recession and avoid causing “irreparable damage” to small businesses. However, the White House rejected this request. Meanwhile, 76 footwear brands also jointly sent a letter to the White House, requesting an exemption from Trump’s “reciprocal tariffs”, claiming that these tariffs posed a “survival threat” to the footwear industry.
In response to the court’s ruling, White House spokesman Kush Desai strongly condemned it, stating that the trade deficit between the United States and other countries constitutes a “national emergency, which has destroyed American communities, left our working groups behind and weakened the foundation of the defense industry”, and emphasized that “how to properly deal with a national emergency should not be decided by unelected judges”. Us media reports show that just minutes after the International Trade Court announced the ruling, the Trump administration filed an appeal, questioning the power of the court. Moreover, at present, there are at least five lawsuits related to Trump’s tariff policy that are pending.
From the perspective of the domestic political landscape in the United States, New York State Governor Cathy Hochul welcomed the ruling on social media, saying, “We sued the Trump administration over the absurd tariff policy – we won!” New York is striving to prevent these tariffs and put the money back in everyone’s pockets. Gregory Meeks, a senior Democratic member of the House Foreign Relations Committee, also said that this ruling confirmed the long-standing consensus that “these tariffs are an illegal abuse of executive power”, and that Trump’s declaration of a false national emergency to justify the global trade war is an absurd and illegal abuse of the International Emergency Economic Powers Act.
The federal court’s ruling on Trump’s tariff policy and the White House’s tough response will undoubtedly further intensify the domestic debates in the United States over trade policies, the balance between executive and judicial powers, and other aspects. The subsequent developments deserve continuous attention.
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