Trade court strikes down a second round of Trump tariffs

A specialty trade court has struck down a second round of tariffs imposed by the Trump administration. Joe Raedle/ North America hide caption toggle caption Joe Raedle/ North America In a victory for importers and a setback for the Trump Administration, the Court of International Trade struck down a second round of worldwide tariffs that the president ordered to replace import levies that were outlawed by the U.S. Supreme Court. The magnitude of the decision remains unclear, as it was initially limited to a pair of importers who challenged the tariffs, as well as the state of Washington. "That's a very good question and one we've sort of been wrestling with," said Jeffrey Schwab who represented the importers on behalf of the Liberty Justice Center. "It's not entirely clear and probably will depend on what happens now." After the Supreme Court ruled in February that President Trump had exceeded his authority in ordering double-digit tariffs on virtually everything the U.S. imports, Trump sought to replace the import taxes using a different law. But that law only authorizes tariffs in response to large and persistent balance-of-payments deficits. The trade court ruled that condition does not currently exist, so the replacement tariffs are not warranted. A balance of payments deficit is distinct from a trade deficit, something the administration itself acknowledged earlier in court. The new tariffs were time-limited in any case, and set to expire in July. …