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Money Explainers
  • 18/6/2025
Courts challenge Trump's authority on tariffs! Will his economic agenda survive the legal fight? A federal court ruled Trump overstepped. What does this mean for the future of US trade policy? The tariff dispute could reach the highest court. Learn how this legal battle could reshape presidential power over trade.

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00:00President Donald Trump's sweeping tariff policy, a cornerstone of his economic agenda,
00:05is facing significant legal challenges that threaten its very foundation.
00:09Despite federal court rulings deeming the bulk of these tariffs illegal,
00:13the administration remains defiant, insisting that the tariffs are not going away.
00:18Commerce Secretary Howard Lutnick, appearing on Fox News Sunday, downplayed the court decisions,
00:24expressing confidence that Trump would ultimately win on appeal.
00:27Last Wednesday, the U.S. Court of International Trade delivered a unanimous ruling that Trump
00:32lacked the authority under the international emergency. Economic Powers Act, the emergency
00:38power he cited to impose reciprocal tariffs on imports from most countries. The court emphasized
00:43that the president does not possess unbounded authority to levy universal duties. This decision
00:49was echoed by a federal district judge in Washington, D.C., who also blocked the administration from
00:54collecting tariffs from Illinois toy importers on similar grounds. While federal appeals courts have
00:59granted the Trump administration temporary stays, allowing the tariffs to continue for now,
01:05officials anticipate an arduous legal battle that could reach the Supreme Court.
01:09Lutnick, however, asserted that, if higher courts side with the trade court,
01:13the administration possesses so many other authorities to implement tariffs.
01:17National Economic Council Director Kevin Hassett stated he is very confident that the nation's top court would
01:24back Trump's tariffs, but also hinted at other alternatives if they are blocked.
01:29Trump himself warned on Truth Social that a ruling against his tariffs would allow other countries to hold
01:35our nation hostage, leading to the economic ruination of the United States of America.
01:39The legal fight injects a significant layer of uncertainty into Trump's trade strategy.

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