Trump tariffs suffer staggering setback in U.S. court
CBC
A U.S. court delivered a sharp rebuke of President Donald Trump's trade policy on Wednesday, declaring he abused his authority and striking down many of his tariffs — at least for now.
The upshot for trading partners, including Canada: Certain specific tariffs on steel and aluminum remain in place, but gone, for now, are sweeping levies on entire countries.
The order by the Manhattan-based U.S. Court of International Trade quashes Trump's 10 per cent across-the-board tariff on most nations and his declaration of a fentanyl emergency to impose 25 per cent tariffs on numerous Canadian and Mexican goods.
The White House vowed to fight back with every available tool. This means an immediate appeal and Trump possibly turning to different legal weapons to fight his trade wars.
Nevertheless, this decision made history.
American courts tend to be deferential to presidents on trade policy, but Trump has tested their limits with a barrage of protectionist actions unlike anything in modern history.
One U.S. trade lawyer called this the most significant legal defeat of a president on trade policy in decades, with the possible exception of certain court setbacks for Richard Nixon.
"It's by far the biggest decision in ages," Scott Lincicome told CBC News. "It's a very big deal. The only question is how long it lasts."
He predicted fallout on several fronts. The court said the U.S. Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president's emergency powers to safeguard the economy.
It said Trump abused the 1977 International Emergency Economic Powers Act (IEEPA) to apply his fentanyl tariffs on Canada and Mexico, as well as his worldwide tariffs.
"We do not read IEEPA to delegate an unbounded tariff authority to the president," said the 49-page decision. "The challenged [tariffs] will be vacated and their operation permanently enjoined."
The court gave the administration 10 days to implement its order.
One of Lincicome's predictions is that some countries will now feel less urgency to negotiate tariff deals with Trump. Another prediction? Expect a gusher of goods to flow into the U.S. soon — especially at the land borders with Canada and Mexico — as importers take advantage of this potentially temporary lull in Trump's trade wars, pending a higher court decision.
"The June import stats are going to be wild," said Lincicome, vice-president of general economics at the Cato Institute, a Washington-based think-tank.
U.S. President Donald Trump is urging other countries to help secure the Strait of Hormuz as Iran targets ships in the vital oil route, but so far there are few firm commitments.
Arab Gulf states reported new missile and drone attacks on Sunday after Iran threatened to widen its campaign as the war in the Middle East entered its third week.
The former secretary general of NATO says he doesn't think allies will be pulled further into the conflict in the Middle East, but he's concerned the ongoing war with Iran will benefit Russia's economy and take the world's attention away from the invasion of Ukraine.
As American and Israeli strikes pound Iran — while it attacks shipping and energy infrastructure across the Persian Gulf — U.S. President Donald Trump made a new threat to Tehran's leaders.
The armed man who rammed his vehicle into one of the largest Reform synagogues in the U.S. Thursday has been identified as a 41-year-old naturalized citizen born in Lebanon, according to federal officials.
With jagged cliffs rising from the Arabian Sea, the Strait of Hormuz is striking in its scenery — and these days, its emptiness. This resource superhighway, which normally hosts more than a hundred of the world’s largest oil and liquid natural gas (LNG) tankers every day, has seen no more than a handful all week.
The Canadian government said Tuesday it is alarmed by the escalation of violence and attacks in Lebanon, as the war in the Middle East expands.
In a resounding victory that is guaranteed to reshape Nepal's politics, rapper-turned-politician Balendra Shah appeared headed for a landslide win in the South Asian country's first polls since youth-led protests toppled the previous government last fall.
China’s latest blueprint for driving growth in its economy was largely written before the U.S. and Israel instigated the most far-reaching war in the Middle East in decades.
U.S. President Donald Trump's firing of Homeland Security Secretary Kristi Noem on Thursday overshadowed the announcement of his plans to nominate Republican Sen. Markwayne Mullin as her successor.
The truck carrying Nepali prime ministerial candidate Balendra Shah was swarmed by cheering supporters in the capital, Kathmandu, on Saturday, unable to inch forward as the former rapper, wearing sunglasses and a sleek black suit, danced on top of the roof.
Israel sent troops into southern Lebanon on Tuesday and warned residents of more than 80 villages to evacuate as the Iran-backed militant Hezbollah group said it was ready for an "open war" with Israel in the wake of the U.S.-Israeli war with Iran.