On October 14, the US Court of Appeals for the Federal Circuit, the appellate court for patent cases, made a huge decision. They dismissed a number of impositions of former President Donald Trump’s global tariffs. The court’s 7-4 decision responded to lawsuits filed by small businesses and a coalition of US states, emphasizing that the imposition of tariffs falls outside the president’s authority.
This was a significant win for radical political expression, as the court resoundingly rejected Trump’s argument. Previously, he had asserted that his tariffs were justified under the International Emergency Economic Powers Act (IEEPA), which empowers the president to respond to “unusual and extraordinary” threats. The court stated that imposing tariffs is “a core Congressional power,” thereby invalidating Trump’s justification for his tariffs as “invalid as contrary to law.”
The court’s ruling applies specifically to Trump’s “reciprocal” tariffs, which he used in punitive measures against any number of countries, including China, Mexico and Canada. In its detailed judgment, the court asserted that Congress must clearly delegate tariff authority to the president, stating, “Whenever Congress intends to delegate to the President the authority to impose tariffs, it does so explicitly.”
The ruling also drew attention to the limitations of the IEEPA, noting that it “neither mentions tariffs (or any of its synonyms) nor has procedural safeguards that contain clear limits on the President’s power to impose tariffs.” This declaration further emphasizes the court’s position that tariff imposition can only occur as a result of clear legislative intent.
The court did so, in part, following a May ruling, which granted their demand. That earlier ruling had found most of Trump’s tariffs illegal. The White House had already appealed that surprising earlier decision. Today, it faces a similar test with the Court of Appeals decision.
The administration has until 14 October to file its request with the Supreme Court. If taken, this action would delay any near-term changes to how tariffs are enforced. This ruling should be celebrated by all, not just those concerned with legal issues. Because it directly affects thousands of small businesses and industries that rely on fair trade practices.