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Appeals Court Judges Skeptical of Trump’s Use of Emergency Power for Tariffs

The hearing’s lack of a decision highlights judges’ doubts about IEEPA’s scope on tariffs.

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From left, Sen. Raphael Warnock, D-Ga., Sen. Peter Welch, D-Vt., and Sen. John Hickenlooper, D-Colo., leave the Senate Democrats’ lunch in the U.S. Capitol on July 15. Welch has introduced a bill that would carve out small businesses from tariffs imposed under President Donald Trump.
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Overview

  • During Thursday’s oral arguments, an 11-judge Federal Circuit panel repeatedly pressed the administration’s lawyer on why a decades-old emergency law authorizes sweeping global import duties
  • Circuit Judge Jimmie Reyna observed that the International Emergency Economic Powers Act “doesn’t even mention the word ‘tariffs,’” underscoring the panel’s incredulity
  • After a specialized trade court ruled in May that the April 2 “Liberation Day” tariffs exceeded Trump’s authority, the appeals court stayed that order and kept the 10 percent duties in place
  • Twelve Democratic-led states and five businesses contend that only Congress has constitutional power to set tariffs and that IEEPA cannot override that delegation
  • No ruling was issued from the bench, leaving the levies active and the dispute headed for an anticipated Supreme Court review