A US federal court has halted President Donald Trump's sweeping tariffs.
This decision is being considered a major setback to an important part of Trump's economic policies.
The Court of International Trade has ruled that the emergency law implemented by the White House does not give the President unilateral authority to impose tariffs on almost every country.
The Manhattan-based court said that the US Constitution gives Congress special powers to trade with other countries and this cannot be encroached upon by the President's responsibility to protect the economy.
The court has also halted the separate tariffs imposed on China, Mexico and Canada after the Trump administration returned to the White House.
Trump administration files appeal
Within a few minutes, the Trump administration has filed an appeal against this decision of the court.
In April, the Trump administration had announced to impose equally heavy tariffs i.e. import duty on goods coming from those countries which buy less goods from America but import more of them. This was named Liberation Day Tariff. The purpose of this decision is said to be to reduce the trade deficit, but American businessmen and many state governments have given it a legal challenge.
In its argument, the Trump administration has cited Richard Nixon's decision of 1971, when the then president imposed tariffs under an emergency. The Trump administration has also said that it is the right of Congress, not the court, to decide the validity of the emergency. But the court has rejected these arguments and said that the trade deficit has existed for 10 years and calling it an emergency situation is not based on facts.
Prakash Kumar Pandey