economy
Trump's tariff defeats in court are Congress's shame
The Court of International Trade issued a 2-1 opinion last week striking down President Donald Trump’s latest tariff scheme under Section 122 of the Trade Act of 1974. The Section 122 tariffs had been imposed shortly after the Supreme Court struck down the president’s “Liberation Day” tariffs in February — tariffs that had already lost in three lower courts before reaching the justices. Now, the administration has appealed the CIT’s ruling to the Federal Circuit.
TL;DR
- The Court of International Trade (CIT) ruled against President Trump's Section 122 tariffs.
- These tariffs were based on an outdated interpretation of "balance-of-payments deficits" and Section 122 of the Trade Act of 1974.
- The fixed exchange rate system for which Section 122 was intended has not existed for half a century.
- The Trump administration's rationale for the tariffs is seen as an attempt to broaden the use of Section 122 beyond its original purpose.
- The administration's legal challenges to tariffs have resulted in a 0-5 record in court.
- The Constitution grants Congress the power to impose tariffs, a power gradually delegated to the executive branch over time.
- While courts can strike down specific tariffs, only Congress can reform the underlying laws.
- Public opinion and business groups largely oppose the administration's tariff policies.
- Lawmakers are urged to reform the statutes that enable broad presidential tariff authority, especially in an election year.