WASHINGTON, United States (AFP) — A US federal court blocked most of President Donald Trump’s sweeping tariffs from going into effect, boosting markets on Thursday even as the White House appealed against the decision by “unelected judges.”
The opinion marks a significant setback to Trump as he bids to redraw the US trading relationship with the world by forcing governments to the negotiating table through tough new tariffs.
Trump’s global trade war has roiled financial markets with a stop-start rollout of import levies aimed at punishing economies that sell more to the US than they buy.
Trump argued that the resulting trade deficits and the threat posed by the influx of drugs constituted a “national emergency” that justified widespread tariffs.
But the three-judge Court of International Trade ruled that Trump had overstepped his authority, barring most of the restrictions announced since he took office in January.
The White House slammed the ruling, arguing that “unelected judges” have no right to weigh in on Trump’s handling of the issue.
“President Trump pledged to put America first, and the administration is committed to using every lever of executive power to address this crisis and restore American greatness,” Trump’s spokesperson Kush Desai said.
Attorneys for the Trump administration promptly filed to appeal against the ruling Wednesday.
One of Trump’s closest White House aides, Stephen Miller, took to social media to decry a “judicial coup” that he said was “out of control.”
Trump unveiled sweeping import duties on most trading partners on 2 April, at a baseline 10 percent, plus steeper levies on dozens of economies, including China and the European Union.
The ruling also quashes duties that Trump imposed on Canada, Mexico and China separately using emergency powers.
Some of the turmoil was calmed after he paused the larger tariffs for 90 days and suspended other duties, pending negotiations with individual countries and blocs.
Asian markets rallied on Thursday after the ruling, while European and US futures also pointed to early gains.
Japan’s tariffs envoy Ryosei Akazawa said as he left for a fourth round of talks in Washington that Tokyo -- reeling from tariffs on cars -- would study the ruling.