Topline
President Donald Trump’s sweeping “Liberation Day” tariffs were struck down in court Wednesday as a federal trade court declared the president exceeded his authority by imposing them, delivering a blow to Trump’s signature economic policy — though an appeals court could still overturn the decision.
President Donald Trump during his “Liberation Day” trade announcement event at the White House on … More
Getty ImagesKey Facts
A three-judge panel at the Court of International Trade ruled Trump’s tariffs imposed on April 2 should be “set aside,” siding with business groups and Democratic-led states that asked the court to strike the tariffs down as unlawful.
The judges agreed with plaintiffs’ claims that Trump doesn’t have authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), which gives presidents the power to impose some sanctions during national emergencies.
IEEPA does not explicitly mention anything about tariffs, which plaintiffs argued means that Trump doesn’t have authority to impose them under the law, and the trade court agreed, writing, “Any interpretation of IEEPA that delegates unlimited tariff authority is unconstitutional.”
The ruling halts Trump’s tariffs on nearly every country – minus the tariffs on Mexico, China and Canada that were imposed prior to April 2 – but the White House is likely to appeal the decision, and either an appeals court or the Supreme Court could quickly put the tariffs back in effect.
Crucial Quote
Trump’s executive orders covering his “Liberation Day” tariffs “exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the three-judge panel wrote in their ruling.
What To Watch For
Trump is all but certain to appeal the court’s ruling to the US Court of Appeals for the Federal Circuit. That court could put the tariffs back into effect, as Bloomberg noted in April that court has historically been deferential to presidents when it comes to tariffs. It’s likely the dispute will ultimately be decided by the Supreme Court, though it’s unclear how and when justices could rule on the issue. Trump could also try to impose his tariffs though other laws, but legal experts told Forbes prior to Wednesday’s ruling that other laws would require Trump to go through a lengthier process to impose any tariffs.
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