Ruling that Trump exceeded his authority! The U.S. International Trade Court blocked the U.S. government's tariff measures from taking effect

According to Cailian News on May 29, the U.S. International Trade Court ruled on Wednesday that U.S. President Trump did not have the authority to impose a blanket package of tariffs on almost all countries, thus declaring that the April 2 "Liberation Day" tariff measures that triggered a global trade war and could subvert the world economy were invalid at the legal level.

The International Trade Court in Manhattan, New York, said that the U.S. Constitution gives the U.S. Congress exclusive power to regulate trade with other countries, and the emergency powers claimed by the president to protect the U.S. economy do not override these powers.

The three-judge panel wrote: "The court held that the International Emergency Economic Powers Act (IEEPA) does not give the president such unlimited power and therefore revoked the controversial tariffs imposed under the Act."

The lawsuit was filed by the Liberty Justice Center, a U.S. nonprofit, nonpartisan litigation organization, on behalf of five U.S. small businesses affected by tariffs. This is the first major legal challenge to Trump's tariff policy.

In fact, as early as two weeks ago, during the court debate, Cailian News Agency and investors had detailed this first court "big test" facing Trump.

When Trump imposed these "Liberation Day" tariffs on April 2, he cited a law that did not explicitly mention tariffs - the International Emergency Economic Powers Act (IEEPA). This law, enacted in 1977, gives the president broad emergency powers to regulate foreign trade in response to "unusual and extraordinary" threats to national security or the economy, but does not explicitly authorize the president to impose tariffs.

The plaintiff believes that President Trump has no right to impose these tariffs. Lawyers at the nonpartisan litigation organization Liberty Justice Center wrote in the complaint that IEEPA did not even mention tariffs, and pointed out that the US trade deficit has continued for decades without causing economic damage and there is no state of emergency.

The plaintiff argues that Congress cannot arbitrarily delegate legislative power to the president. "If there are any constitutional limits on authorization, this case applies - the executive claims to have nearly unlimited power to impose large-scale tax increases and launch a global trade war," the complaint said.

The US Federal Trade Court has jurisdiction over tariffs and trade disputes throughout the United States, but its past operations have mostly been out of the public eye, rarely mentioned by major media, and even known little to most lawyers.

Of course, the Trump administration can still appeal this ruling of the US International Trade Court to the US Court of Appeals for the Federal Circuit in Washington, DC, and even to the US Supreme Court. It is reported that the Trump administration has filed a notice of appeal after the federal court stopped its trade measures.

But in any case, Trump's defeat in the US International Trade Court this time may obviously disrupt much of his trade agenda and affect the negotiation strategy between other countries and the United States. Although if Trump is ultimately prohibited from invoking IEEPA to impose tariffs, he may still resort to other regulations to achieve similar goals, but there may be no regulations that provide unlimited and broad powers as he claims.

Judging from the trend of financial markets, after the US International Trade Court made its ruling today, the stock, bond, foreign exchange and commodity markets all experienced violent fluctuations. S&P 500 futures and Nasdaq 100 futures rose 1.3% and 1.6% respectively; the U.S. dollar index soared by about 80 points in the short term; and the spot gold price fell rapidly, once approaching the $3,250 mark.