Trump’s Big Blow: Court Halts ‘Liberation Day’ Tariff; India-Pak Ceasefire Drama Surfaces

International News:  US President Donald Trump has suffered a major setback. A federal court in Manhattan has banned the 'Liberation Day' tariff implemented by Trump as illegal. The court said that the President has misused its rights and violated the constitution. However, the Trump administration opposed the decision and demanded the continuation of Tariff.

Impact of Trump's tariff on the Indo-Pak ceasefire?

The Trump administration argued in the court that this decision may deteriorate trade disputes with China and recently affect the ceasefire between India and Pakistan. He said that the President's tariff power played an important role in the ceasefire between India and Pakistan in May. The administration also stated that talks are underway on tariffs and business agreements with many countries, the last date of which is 7 July.

Court rejected the plea of ​​Trump administration

A three-member bench of the Court of International Trade clarified that the US Congress has the right to control foreign trade, not the President. The court said that the President has limited emergency powers and Trump's tariffs are out of this limit. Tariffs imposed by Trump under the International Emergency Economic Powers Act (IEEPA) are illegal.

The court order is written:

• There is no time or regional limit for the President's claim to put tariffs, which is beyond the purview of law.
• According to the Constitution, the Parliament means the Congress, not the President, and not to the President.
• The President gets limited rights in an emergency, which do not apply in this matter.

Trump administration's argument and court response

Giving the example of the tariff set up by President Nixon in 1971, the Trump administration said that it is not the court, not the court, but to decide the validity of the decision of emergency tariffs. But the court rejected the administration's arguments.

What was the Trump Tariff?

• On April 2, Trump imposed a 10 percent tariff on most of the US business partners.
• High rates were implemented with which America's trade deficit was the highest, such as China and the European Union.
• Some tariffs were removed after a week as they led to instability in the US stock market.
• The purpose of the tariff was to revive American manufacturing.

Who challenged Trump's Tariff?

• A group of small traders challenged the tariff.
• 12 Democratic attorneys general also sued it, saying that the law that Trump resorted to does not allow tariffs to be imposed on several countries simultaneously.

What next?

The Trump administration can challenge the decision in the Federal Circuit Court of appeals, and can also go to the Supreme Court if needed. This is the first time a federal court has described Trump's tariff as illegal.