This week, an obscure trade court dropped a bombshell ruling: President Trump did not have the authority to issue sweeping tariffs under a 1977 law. The government has appealed the court’s decision. WSJ’s James Fanelli and Gavin Bade dig into the ruling and what it could mean for the future of Trump’s trade agenda. Annie Minoff hosts. Further Listening: The Tariff Trade Off: Jobs vs. Higher Prices A Tariff Loophole Just Closed. What That Means for Online Shopping Sign up for WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices
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There's a squat, boxy building in New York City, a relatively unimposing courthouse tucked into Lower Manhattan. It's called the U.S. Court of International Trade. And you'd be forgiven if you've never heard of it. Neither had our legal reporter, James Finelli.
You know what? I had not heard of it until these tariffs and potential legal challenges to them started percolating. A trade lawyer I spoke to about this court said that, you know, most people graduating law school had probably never heard of it.
The court is obscure, but when it comes to matters of trade, it's powerful.
This court has national jurisdiction. So that means that, you know, it can hear cases all over the country involving any kind of trade dispute. And when they issue a decision, it can affect everything.
And this week, it did.
Tonight, a three-judge panel ruling that the emergency declared by President Trump to impose those sweeping tariffs, quote, exceeds any tariff authority delegated to the president.
The trade court ruling is a big deal. That's a big deal. If this ruling stands, then Trump will have to find a new way to impose tariffs. He wouldn't be able to declare a national emergency and then enact these broad levies around the world.
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Friday, May 30th. Coming up on the show, how an obscure court upended Trump's trade agenda. On April 2nd, Trump imposed his Liberation Day tariffs and kicked off a global trade war.
The president announced goods from every nation we trade with will be subject to import taxes. A 34% tax on imports from China. That's on top of the 20% tariff already imposed. 24% on Japan and 20% on the European Union.
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