Did Tim Cook get the last laugh? Federal Court tosses Trump's tariffs as administration appeals
Federal Trade Court rules that President Trump had no authority to impose tariffs on other countries.
President Donald Trump's plan to force Apple to build the iPhone in the U.S. was always unworkable since finding a facility large enough to build the huge number of iPhone units Apple sells in the States seems impossible. At the same time, putting together a supply chain in the U.S. to match the one Apple relies on in Asia might be too tough a task for Apple. But it might not matter anyway as the threat of a 25% tariff that Trump said he would impose on Apple (and other manufacturers including Samsung) might have disappeared, at least temporarily.
On Wednesday, The U.S. Court of International Trade ruled that President Trump does not have the authority to impose tariffs on other countries. The U.S. Federal Trade Court said that the U.S. Constitution gives Congress exclusive authority to regulate commerce with other countries. The court added that these powers belonging to Congress are not overridden by any emergency powers given to the president to safeguard the economy. The Trump administration quickly filed a notice of appeal.
The three-judge panel said that it does not comment on whether it believes the president's decision to use tariffs as leverage is a wise or effective move. Instead, the court said that it cannot allow the president to use tariffs in that manner because the law does not allow it. Trump has said that the International Emergency Economic Powers Act gives him the power to bypass Congress and unilaterally announce tariffs. However, that law is used when there are "unusual and extraordinary" threats during a national emergency.
Traditionally, the International Emergency Economic Powers Act has been used to impose sanctions or freeze the assets of U.S. enemies. Trump is the first to use the law as an excuse to call for tariffs on certain markets.
"The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage. That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it."
-The U.S. Court of International Trade's three-judge panel
A pair of lawsuits led to today's ruling. One was filed by 13 states and the other was filed by the nonpartisan Liberty Justice Center on behalf of five small U.S. businesses. These small companies import goods from markets targeted by the tariffs and said that the tariffs would negatively impact their businesses.
Responding to the ruling and other judge-announced decisions that reversed Executive Orders signed by Trump, White House deputy chief of staff Stephen Miller said, "The judicial coup is out of control." Leading the 13 states suing over the tariffs is Oregon Attorney General Dan Rayfield, a Democrat. He has criticized Trump's tariffs and responded to the court's ruling today by saying, "This ruling reaffirms that our laws matter, and that trade decisions can’t be made on the president’s whim."
Overnight markets are rallying on the news with Apple's shares surging $6.99, or 3.5% after-hours, to $207.41.
![T-Mobile customers are only now finding that T-Life records their screen [UPDATED]](https://m-cdn.phonearena.com/images/article/170775-wide-two_350/T-Mobile-customers-are-only-now-finding-that-T-Life-records-their-screen-UPDATED.jpg)
![T-Mobile, Verizon and AT&T under fire for lack of transparency on surveillance [UPDATED]](https://m-cdn.phonearena.com/images/article/170786-wide-two_350/T-Mobile-Verizon-and-AT-T-under-fire-for-lack-of-transparency-on-surveillance-UPDATED.jpg)
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed: