Overview
- A coalition of 12 states presented arguments to the U.S. Court of International Trade, challenging President Trump's use of the International Emergency Economic Powers Act (IEEPA) to justify import tariffs.
- The states claim the U.S. trade deficit does not meet IEEPA’s criteria for an 'unusual and extraordinary' threat and argue that the president exceeded his authority by bypassing Congress.
- The Trump administration defends the tariffs as necessary to address trade imbalances and asserts that only Congress, not states or courts, can challenge the president's emergency declaration.
- The tariffs, including a 10% baseline on all imports and higher rates for certain countries, have sparked economic uncertainty and prompted at least seven legal challenges.
- A decision from the trade court is anticipated in the coming weeks, with potential appeals expected to reach the Supreme Court.