AP reported that the ruling of a three- judges' panel at the International Court of Commerce in New York was made on May 28 after a number of lawsuits alleged that President Donald Trump had exceeded his authority, causing US trade policy to depend on his wishes and causing economic chaos.
The verdict comes from a lawsuit between 12 states and a series of small businesses, including wine importer V.O.S. Selections said the tariffs had pushed businesses to the brink of bankruptcy.
The court's ruling states that Donald Trump's global and retractive taxes "exceeded any authority granted to the president under the International Emergency Economic Power Act (IEEPA) in 1977".
President Donald Trump has declared a trade deficit a national emergency. However, according to this verdict, the law does not give the President the right to unilaterally impose taxes for that reason.
"This ruling sends a clear message: The president cannot arbitrarily decide the fate of the country's economy based only on personal views" - Oregon Attorney General Dan Rayfield said. Oregon is one of 12 states participating in the lawsuit.
Although US law allows the president to act quickly in emergency situations, the court said that US taxation was not within that scope, especially when the trade deficit did not constitute an unusual and serious threat as required by law.
Trump's lawyers argued that President Trump's precedent showed the president had the right, but the court disagreed.
During the peak of his "America First" policy, Mr. Trump imposed tariffs on Canada, China, Mexico and many other countries, causing a global financial market to fluctuate. However, economists believe that these tariffs will have little impact on the US economy, but will create great instability in the world market.
Now, with the court having ruled against the right to impose a tax under an emergency law, Trumps rates are at risk of being reversed, or at least deprived of their legality.
The Trump administration has not yet responded officially, but is expected to appeal. With at least seven duties related to tariffs pending, the legal battle is far from over.
