Federal court strikes down Trump’s 10 percent global tariffs as 'invalid'

New Delhi/Washington: In another setback to the White House, a US federal court has struck down the 10 per cent global tariffs slapped by President Donald Trump, terming them "invalid" and "unauthorised by law".

These new tariffs were imposed by Trump on all countries, including India, on February 24 for 150 days following a Supreme Court verdict that struck down his earlier sweeping levies.

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The Supreme Court had said that the International Emergency Economic Powers Act (IEEPA) does not authorise the imposition of duties.

In a split verdict, the Court of International Trade on Thursday ruled that the provisions of the Trade Act of 1974, invoked by Trump to impose 10 per cent tariffs could be effective only in case of a balance of payment crisis.

Judges Mark A Barnett and Claire R Kelly said in the ruling that if the president has the ability to select among the sub-accounts to identify a balance-of-payments deficit, unless every sub-account is balanced, the president would always be able to identify a balance-of-payments deficit.

"Such an expansive reading of the statute" would give Trump unlimited tariff power that belongs to Congress, the two judges said, adding that such preferred interpretation of the statute by the government should be disfavoured.

"This case turns on the meaning of Section 122 and whether the president asserted the existence of the conditions required by the statute in order to lawfully proclaim the import surcharges. ... As discussed further below, the President's Proclamation fails to assert that those required conditions have been satisfied," the majority judges said in the ruling.

Judge Timothy C Stanceu disagreed with the two brother judges.

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The US administration is expected to appeal against Thursday's ruling.

The court's decision directly applied only to three of the plaintiffs, the state of Washington and two businesses, spice company Burlap & Barrel and toy company Basic Fun!

India and the US had announced the framework for an interim bilateral trade agreement in February, which is now being re-negotiated in the wake of the Supreme Court order.

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