Major setback for Trump as U.S. court blocks tariffs, Pg1

• U.S. Court of International Trade blocked most tariffs imposed by President Trump under International Emergency Economic Powers Act of 1977 (IEEPA).

• Court ruled that the President overstepped constitutional authority, citing lack of delegated unlimited tariff power.

• The decision halts broad tariffs imposed since January 2017, affecting trade with countries like China, Canada, and Mexico.

• Some tariffs, particularly 25% duties on auto, steel, and aluminium, remain in place.

• The decision was based on two cases filed by businesses and State coalitions.

• President Trump invoked IEEPA by declaring trade deficits and drug influx a “national emergency”, aiming to leverage tariffs in trade negotiations.

• The ruling reaffirms the constitutional limitation on executive overreach, especially regarding Congress's power of the purse and foreign trade regulation.

• The court emphasized that unbounded authority to impose tariffs globally is unconstitutional, strengthening judicial checks on executive power.

• IEEPA (1977): U.S. law allowing presidential action during national emergencies; does not explicitly authorize unlimited trade tariffs.

• Judicial Review: Constitutional principle allowing courts to assess the constitutionality and legality of executive or legislative actions.

• Tariffs: Taxes imposed on imported goods, used as economic tools in trade policy and negotiations.

Mains Mock Question:

Examine the role of judicial review in checking executive overreach in democratic systems. How does this principle play out in the context of international trade regulation?