Fed Court Rules Against New Tariffs    05/08 06:05

   A federal court ruled Thursday against the new global tariffs that President 
Donald Trump imposed after a stinging loss at the Supreme Court.

   WASHINGTON (AP) -- A federal court ruled Thursday against the new global 
tariffs that President Donald Trump imposed after a stinging loss at the 
Supreme Court.

   A split three-judge panel of the Court of International Trade in New York 
found the 10% global tariffs were illegal after small businesses sued.

   The court ruled 2-1 that Trump overstepped the tariff power that Congress 
had allowed the president under the law. The tariffs are "invalid" and 
"unauthorized by law," the majority wrote.

   The third judge on the panel found the law allows the president more leeway 
on tariffs.

   If the administration appeals Thursday's decision, as expected, it would 
first turn to the U.S. Court of Appeals for the Federal Circuit, based in 
Washington, and then, potentially, the Supreme Court.

   At issue are temporary 10% worldwide tariffs the Trump administration 
imposed after the Supreme Court in February struck down even broader 
double-digit tariffs the president had imposed last year on almost every 
country on Earth. The new tariffs, invoked under Section 122 of the Trade Act 
of 1974, were set to expire July 24.

   The court's decision directly blocked the collection of tariffs from three 
plaintiffs -- the state of Washington and two businesses, spice company Burlap 
& Barrel and toy company Basic Fun! "It's not clear'' whether other businesses 
would have to continue to pay the tariffs, said Jeffrey Schwab, director of 
litigation at the libertarian Liberty Justice Center, which represented the two 
companies.

   "We fought back today and we won, and we're extremely excited," Jay Foreman, 
CEO of Basic Fun!, told reporters Thursday.

   The ruling marked another legal setback for the Trump administration, which 
has attempted to shield the U.S. economy behind a wall of import taxes. Last 
year, Trump invoked the 1977 International Emergency Economic Powers Act 
(IEEPA) to declare the nation's longstanding trade deficit a national 
emergency, justifying sweeping global tariffs.

   The Supreme Court ruled Feb. 28 that IEEPA did not authorize the tariffs. 
The U.S. Constitution gives Congress the power to establish taxes, including 
tariffs, though lawmakers can delegate tariff power to the president.

   Dave Townsend, a trade lawyer at Dorsey & Whitney, said the ruling will open 
the door for more companies to request that the tariffs be thrown out and that 
any payments they've made be refunded.

   "Other importers likely will now ask for a broader remedy that applies to 
more companies," Townsend said, though he cautioned the case could also reach 
the Supreme Court.

   Trump is already taking steps to replace the tariffs that were struck down 
by the Supreme Court in January. The administration is conducting two 
investigations that could end in more tariffs.

   The Office of the U.S. Trade Representative is looking into whether 16 U.S. 
trading partners -- including China, the European Union and Japan -- are 
overproducing goods, driving down prices and putting U.S. manufacturers at a 
disadvantage. It is also investigating whether 60 economies -- from Nigeria to 
Norway and accounting for 99% of U.S. imports -- do enough to prohibit the 
trade in products created by forced labor.