The U.S. Court of Appeals for the Federal Circuit has rejected President Trump’s assertion that emergency powers justify his worldwide tariffs, a blow to his efforts to refashion global trade. In a 7-4 decision, the court affirmed a lower court’s ruling that the tariffs were not authorized by the statute Trump cited to justify them. The International Emergency Economic Powers Act (IEEPA) authorizes the president to issue certain economic sanctions to counter an “unusual and extraordinary threat” in an emergency, but it does not permit the president’s sweeping moves. The ruling does not take effect immediately, as the court withheld the mandate for its decision until Oct. 14, so the administration can appeal to the Supreme Court.
Trump emphasized that all tariffs are still in place, which he said a “Highly Partisan Appeals Court incorrectly” decided. He called tariffs the “best tool” to help workers and support companies in producing American products, acknowledging the proximity to Labor Day weekend. If allowed to stand, this Decision would literally destroy the United States of America, the president said.
The majority of the U.S. Court of Appeals argued that Trump’s use of tariffs amounts to a decision of vast economic and political significance, meaning the government must “point to clear congressional authorization” for its interpretation of IEEPA. However, the judges discerned “no clear congressional authorization” for levies of the “magnitude” of those that Trump imposed.
Trump is the first president to have attempted to impose tariffs by invoking IEEPA, citing the emergency law in February to announce levies on Canada, China, and Mexico, and pointing to the fentanyl crisis. The U.S. Court of International Trade invalidated the tariffs in May, though they have remained in effect as the mid-level court weighed the administration’s appeal.
