Overview

• A Federal Circuit panel grilled administration lawyers over President Trump’s expansive tariffs during nearly two hours of oral arguments in Washington
• Judges challenged the administration’s contention that IEEPA authorizes import taxes, noting the 1977 statute has never been used to impose tariffs
• Administration attorney Brett Schumate maintained that IEEPA’s grant of power to “regulate importation” encompasses reciprocal duties in an emergency
• The court allowed the April “Liberation Day” tariffs to remain in effect pending its deliberations and is expected to rule before the August 1 trade agreement deadline
• Whatever the outcome, a swift appeal to the Supreme Court is likely, potentially redefining the boundary between presidential and congressional tariff powers