American firms sue Trump over 'unconstitutional' tariffs
Five American companies have filed a lawsuit against Donald Trump in the Court of International Trade in New York City. They are demanding a review of the legality and suspension of the tariffs introduced by the president on "Liberation Day." Lawyers are explicitly calling it an "unconstitutional delegation."
Donald Trump's trade policy is marked by dramatic turns. In early April, he announced "retaliatory" tariffs on imports from most countries. The basic rate was set at 10 percent, but in many cases, it was significantly higher. This announcement caused panic in global financial markets.
A few days later, Trump decided that for now, only the basic rate would apply, and the remaining "retaliatory" tariffs would be deferred for 90 days—with the exception of China, whose exports were subjected to even higher rates (145 percent). Ultimately, the U.S. made another exception in its tariff policy, exempting consumer electronics imports from tariffs.
The U.S. president's policy significantly impacts American businesses. The lawsuit challenging the legality of the tariffs was filed by a group of attorneys at the Liberty Justice Center (LJC). Representing five companies "severely affected" by the tariffs, they challenge the president's decision in the American Court of International Trade.
— No one person should have the power to impose taxes that have such vast global economic consequence — said Jeffrey Schwab from LJC.
Lawyers point out that Trump, in imposing the tariffs, invoked the International Emergency Economic Powers Act (IEEPA). This act allows the president to implement emergency economic measures in the event of an "unusual and extraordinary threat" to national security or the national economy.
Strong words are used: Legislative power usurpation
According to experts, these criteria were not met because a trade deficit does not pose a threat to national security. The lawsuit also emphasizes that tariffs were imposed on countries that do not have a trade deficit with the U.S., which undermines the entire argument of the American administration.
— If starting the biggest trade war since the Great Depression based on a law that doesn’t even mention tariffs is not an unconstitutional usurpation of legislative power, I don’t know what is — said Prof. Ilya Somin from George Mason University.
The New York court has not yet set a date for the hearing in this case.
