Judge dismisses California lawsuit over Trump tariffs, citing jurisdiction issue

AP News

SACRAMENTO, California — A U.S. District Court judge on Monday dismissed California officials’ lawsuit over President Donald Trump’s tariffs, concluding the case belongs in an out-of-state court that specializes in trade disputes.
But Judge Jacqueline Scott Corley dismissed the case outright rather than immediately transfer it to the trade court, as Trump’s attorneys had requested.
Still, Scott Corley’s decision is a blow to California officials who had hoped the district court would rule on the legality of Trump’s unilateral tariffs.
Last week, a D.C. District Court judge went the opposite direction and invalidated Trump’s tariffs, ruling in favor of two toy-import companies.
The trade court also struck down Trump’s tariffs last week, although his taxes on imports have largely been left in place while federal litigation plays out.

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CA’S SACRAMENTO — A U. A. California officials’ lawsuit against President Donald Trump over his tariffs was dismissed by a district court judge on Monday, who determined that the case should be heard in an out-of-state court that handles trade disputes.

The decision, which is distinct from two well-known decisions made by other courts last week, partially supports the Trump administration’s position that the case should be heard in the New York-based U.S. S. . instead of the U.S. Court of International Trade. S. California’s Northern District District Court, where Governor… Earlier, state attorney general Rob Bonta and Gavin Newsom filed their case.

However, instead of sending the case straight to the trade court as Trump’s lawyers had asked, Judge Jacqueline Scott Corley dismissed it outright. By doing this, she agreed to the state’s request to allow California to challenge the decision in the U.S. A. The bench of the 9th Circuit Court of Appeals is renowned for its liberal views.

Nonetheless, California officials who had hoped the district court would decide whether Trump’s unilateral tariffs were legal were disappointed by Scott Corley’s ruling. The D.C last week. Instead, a District Court judge ruled in favor of two toy import companies, invalidating Trump’s tariffs. Trump’s tariffs were also overturned by the trade court last week, but his import taxes have mainly remained in effect while the federal lawsuit is ongoing.

It was expected that Scott Corley would rule against California. In the past, she had indicated that her San Francisco court probably lacked jurisdiction over the case, pointing out that the trade court has jurisdiction over tariff cases, which was intended to avoid a patchwork of tariff decisions in federal district courts.

California filed the first lawsuit against Trump in April over his alleged “Liberation Day” tariffs, arguing that the International Emergency Economic Powers Act prohibits the president from unilaterally imposing import taxes. By asserting that the nation is experiencing a national emergency as a result of its trade deficits with other nations, Trump has imposed tariffs without the consent of Congress.

Late Monday, Newsom and Bonta’s offices announced that the state had already filed an appeal of the ruling.

In a statement, Bonta stated, “We firmly believe this case belongs in federal district court and are pleased the court considered our wishes in dismissing this case so we have the opportunity to seek review.”.

Newsom spokesperson Tara Gallegos noted the D.C and underlined that the case was dismissed on procedural grounds. Last week, the district court came to a different decision. She went on to say, “President Trump’s use of emergency powers to impose these illegal tariffs has been rejected by numerous courts. “.”.

While California officials joined Democratic leaders nationwide last week in celebrating the two federal court rulings that found Trump had overreached his executive powers, Scott Corley’s decision is a setback for the state.

“It’s raining tacos today,” Newsom stated on Thursday’s MeidasTouch Podcast, seemingly alluding to the acronym TACO, which Wall Street investors have used to describe the outcry over Trump’s fluctuating import taxes. The phrase “Trump always chickens out” is what the president has taken offense at. “”.

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