Federal Trade Court prevents Trump from levying massive tariffs under Emergency Powers Act

WASHINGTON (AP) – The Federal Trade Court on Wednesday blocked President Donald Trump's collection of imports under the emergency force law.

The ruling of the three judges, based in New York's International Trade Court, ruled in several lawsuits that Trump exceeded his powers, making U.S. trade policy depend on his whimsicality and freed up economic chaos.

“The global and retaliatory tariff orders exceed any authority granted by the IEPA to regulate imports through tariffs,” the court wrote.

The White House did not immediately respond to news seeking comments. The Trump administration is expected to appeal.

At the heart of Trump's trade policy is at least seven lawsuits challenging taxes.

Tariffs usually have to be approved by Congress, but Trump said he has the right to act because the country's trade deficit constitutes a national emergency. He imposed tariffs on most countries in the world at one point, thus causing the market to rise.

The plaintiff argued that the Emergency Powers Act did not authorize the use of tariffs, and even so, the trade deficit would not comply with the emergency that legally required was triggered only by “unusual and extraordinary threats.” The United States has been in a trade deficit with the rest of the world for 49 consecutive years.

Trump imposes tariffs on most countries in the world to reverse the huge and long-term trade deficit in the United States. He earlier fought against illegal movement of illegal flows and synthetic opioids at the U.S. border.

His administration argued that the court approved the emergency use of tariffs by then-President Richard Nixon in 1971, and that only Congress, not the court, could determine the “political” issue of the president's declaration of emergency compliance with the law.

Trump's Liberation Day tariffs shocked global financial markets and caused many economists to lower the prospects for U.S. economic growth. But so far, tariffs seem to have little impact on the world's largest economy.

The lawsuit was filed by a group of small businesses, including wine importer Vos Selections, whose owners say the tariffs are having a significant impact and that his company may not survive.

More than a dozen states have also filed lawsuits, led by Oregon. “This ruling reaffirms our law importance and trade decisions cannot be on the whim of the president,” Attorney General Dan Rayfield said.

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Associated Press writers Zeke Miller and Paul Wiseman contributed to the story.