US court declares Donald Trump’s tariffs to be illegal

Tart defeat for US President Donald Trump: A federal court in the United States has denied its government to impose far -reaching tariffs, citing an emergency law. So is Trump’s aggressive trade policythe financial markets shaken worldwide and also cost private investors a lot of money, at least braked for the time being. However, his government immediately appealed against the decision.

The responsible court for international trade in New York ordered that the tariffs in question should be « lifted and their application permanently prohibited ». The decision affects almost all tariffs enacted by Trump’s government – including those punitive taxes that the Republican had imposed on the « Day of Liberation » he described in early April, but also certain tariffs on goods from Canada, Mexico and China.

The last word has not yet been spoken. The legal dispute is now likely to go through the instances. It is not excluded that an appellant will put the tariffs back into force until a final decision.

Several lawsuits against Trump’s penalty taxes

Trump had presented a far -reaching customs package at an event in an event in the Rosengarten of the White House and the USA announced the fight. Several countries reacted with the announcement of countermeasures, while others were looking for the path through negotiations.

At that time, Trump also imposed so -called mutual tariffs, which he founded with the trade deficit of the respective trading partner – temporarily exposed them to the financial markets. At the same time, he imposed on universal tariffs of 10 percent that affect almost all over the world.

Among other things, a dozen US states before the court in New York-ten of them are ruled by the Democrats, two of Trump’s Republicans. Other opponents of Trump’s trade policy also filed a lawsuit against the tariffs. The national trade policy should not depend on Trump’s moods, it said in one of the applications.

Trump relies on an emergency due to trade deficits

Customs usually have to be approved by the US parliament-but in practice the president can independently impose tariffs under certain conditions. Trump argues that trade deficits with other countries are a national security risk and that there is a national emergency. With this reason, the Republican imposed the far -reaching tariffs by decree – and in this case the parliament was surrounded. He used a law from 1977 that had never been used for tariffs before. The court in New York concluded that this is not right.

Kush Desai, a spokesman for the White House, sharply criticized the decision of the court. The trade deficits would have created a national emergency that weakens American communities, brought workers into need and weakened the US defense industry, it said in a statement that the German press agency in Washington was available. No elected judges would not have to decide how to deal with a national emergency. « President Trump promised to put America in the first place. »

Trump regularly emphasizes to bring jobs back to the USA with the tariffs and to boost domestic production. At the same time, he took negotiations with several trading partners and used the tariffs as a means of pressure to force concessions. Great Britain has just closed a trading pact with the USA to avert high tariffs. With China, the US government also negotiated a reduction in mutual tariffs.

Main opponent EU and China

Especially against The European Union Trump keeps going violently. He regularly accuses the Europeans to « rip off » the United States, while with higher tariffs on imports to the United States, he wants to force more balance in world trade. Most recently, the trade dispute came up again: Trump surprisingly threatened the EU with punitive tariffs of 50 percent from June 1. A little later he pushed this measure up by a month. Now both sides want to find a solution by July 9th.

In his trading policy course, Trump also focuses on the second largest economy: China is the « greatest culprit » for him. Finally, both sides took a big step together during conversations in Geneva.

For Trump, his customs policy is also risky for Trump – even if the Republican does not want to know anything about it. Because an import customs works similarly to a tax. The submission must be paid to the state by the importing company – in this case by companies in the USA. Importing companies usually pass on the higher costs to consumers. This in turn can heat inflation.