A U.S. court has blocked Trump’s Liberation Day tariffs

A U.S. court has blocked President Donald Trump’s tariffs from going ahead.

On Wednesday, the Court of International Trade found that only the U.S. Congress has the ability to impose tariffs.

The judges told American media Trump’s tariff orders exceed Presidential authority.

The White House has appealed the decision.

Tariffs

A tariff is a tax on imports. It’s applied to foreign-made goods brought into another country and paid by the importer.

Since coming to power in January, Trump has imposed a range of tariffs on imports to the U.S, including a 25% tariff on Australian steel and aluminium.

The goal of tariffs is to encourage a country’s companies and citizens to buy locally-produced goods, boosting industrial activity. Trump has also claimed trading partners have “ripped off” America.

'Liberation Day'

In an address at the White House on 2 April, Trump announced a minimum 10% tariff on all countries’ exports. He called the announcement “Liberation Day”.

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Displaying a chart of tariffs imposed against the U.S. by other countries, Trump claimed he was charging “approximately half” of that amount in return. For example, the U.S. planned to impose a 34% tariff on China, who Trump claimed charged a 67% tariff on American products.

Since then, the U.S. and China have agreed to temporarily pause their tariffs.

Ruling

On Wednesday, the Court of International Trade in New York City blocked Trump’s ‘Liberation Day’ tariffs.

Trump has been using emergency powers to impose tariffs on global imports. These powers allow the President to declare a national emergency and pass certain legislation.

The court ruled that the U.S. Constitution only gives Congress the ability to impose tariffs and manage the international economy. The judges said Trump’s tariffs “exceed any authority granted to the President”.