Federal Judges Question Trump's Tariff Powers Claim

A federal appeals court showed clear doubts Thursday about the Trump administration's claim to sweeping tariff powers under the International Emergency Economic Powers Act—a law that, notably, never mentions tariffs. The Justice Department contends President Trump can use the statute to levy broad new taxes on imports, but judges pushed back, questioning whether the law's actual language supports that authority, CNBC reports. Justice Department attorney Brett Shumate admitted that "no president has ever read IEEPA this way" but said Trump's actions are lawful.

The 11-judge US Court of Appeals for the Federal Circuit panel drilled into the statute's intent, with one judge noting that the IEEPA mentions foreign exchange and currency but not tariffs. "There's an old expression in the law, 'noscitur a sociis': 'you know it by its friends,'" the judge said. "Tariffs seems to have no friends in that statute. So, why?"

• The 1977 law gives the president the power to regulate commerce in times of war or national emergency. Judges questioned Trump's claim that trade deficits are a national emergency that tariffs can address, the AP reports. "If the president says there's a problem with our military readiness, and he puts a 20% tax on coffee, that doesn't seem to necessarily deal with (it)," Chief Circuit Judge Kimberly Moore said.
• Neal Katyal, representing opponents of Trump's tariffs, argued the administration's reading of the law would let the president "do whatever he wants, whenever he wants, for as long as he wants, so long as he declares an emergency"—a level of executive power he called "breathtaking" and unprecedented in American history.

• A lower court struck down Trump's sweeping tariffs in May, but the Federal Circuit Appeals Court paused that ruling, keeping the tariffs in place as the legal fight continues. The case—VOS Selections v. Trump—could become a landmark test of the president's authority on trade, potentially shaping the fate of several similar lawsuits. The plaintiffs argue that Trump has usurped Congress' authority to set tariffs, CNBC reports.
• Trump, for his part, has cast the case as crucial for his trade agenda and national security, warning in a Truth Social post Thursday that without the power to impose retaliatory tariffs, "our Country … would be 'DEAD,' WITH NO CHANCE OF SURVIVAL OR SUCCESS."
• A ruling in the case isn't expected immediately, but whatever the court decides, the case is likely to end up before the Supreme Court, the New York Times reports.