US Trade Court Scrutinises Trump Administration’s Forced-Labour Tariffs

A three-judge panel of the US Court of International Trade has examined challenges to tariffs imposed by the Trump administration on imports from approximately 60 trading partners.

The duties were introduced on the basis that the affected countries were not doing enough to prevent forced labour from entering international supply chains.

The tariff rates reportedly range between 10 per cent and 12.5 per cent.

The European Union and China are among the economies affected.

Four small businesses and 25 Democratic-led states are challenging the policy, arguing that the administration exceeded authority delegated by Congress.

Their lawyers also argue that the government failed to conduct the detailed country-specific investigation required to justify such sweeping trade measures.

The Justice Department disputes that position and maintains that the administration conducted adequate evaluations before taking action.

The court questioned both sides about the legal basis for the tariffs and the quality of the evidence supporting them.

The litigation follows an earlier US Supreme Court ruling that restricted the administration’s use of emergency powers for broad tariff programmes.

The government subsequently relied on other statutory provisions for its latest trade measures.

The case therefore centres on a recurring constitutional and administrative issue in US trade policy: Congress possesses the power to regulate foreign commerce, but it can delegate substantial responsibilities to the President.

The key question is how broad that delegated authority is and what procedural requirements must be satisfied before tariffs are imposed.

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News Source: Reuters

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