Trump’s Use of Emergency Tariff Powers Sparks Uproar—Court May Decide Today

On Thursday, judges from the U.S. Court of Appeals questioned whether Donald Trump’s tariffs were legally justified under his emergency powers as president. A lower court had ruled that he exceeded his authority by imposing excessive tariffs on imported goods.

The U.S. Court of Appeals for the Federal Circuit, based in Washington, D.C., is currently reviewing the legality of reciprocal tariffs imposed by Trump in April on several U.S. trade partners, as well as tariffs levied on China, Canada, and Mexico in the month of February.

What is the matter all about?

While hearing two cases filed by five small businesses and 12 Democrat-led U.S. states, the judges raised questions about the legal basis for the tariffs imposed under emergency powers and asked government attorney Brett Shumate to clearly explain how the International Emergency Economic Powers Act (IEEPA) granted Trump the authority to impose tariffs.

What is the IEEPA law in the U.S.?

The IEEPA, a law passed in 1977, has traditionally been used to impose sanctions on foreign enemies or freeze their assets. Donald Trump became the first U.S. president to use this law to apply tariffs. The judges frequently interrupted Shumate and heavily challenged his arguments.

One judge said, "IEEPA does not even mention tariffs." Shumate responded that the law grants "extraordinary" powers in emergencies, including the ability to completely halt imports.

What did the judge say in the case?

They stated that the IEEPA authorises tariffs because it allows the president to "regulate" imports during times of crisis. However, the states and businesses opposing the tariffs argued that the IEEPA does not allow such actions and that the U.S. Constitution gives the authority to set tariffs and taxes to Congress, not the President.