Former President Donald Trump—who the policy affects—has requested the Supreme Court to expedite its review. This appeal is an attempt to reverse that lower court decision and have the majority of his tariffs declared legal. Today, the U.S. Court of Appeals for the Federal Circuit agreed, ruling that Trump exceeded his presidential authority by imposing costly tariffs on America’s trading partners. If the court upholds these rules, it will mark a significant change in U.S. trade policy toward one that requires complete transparency.
To justify today’s sanctions, in 2018 Trump invoked the International Emergency Economic Powers Act (IEEPA) to impose these tariffs. He declared the federal deficit with foreign nations a national emergency. The appeals court found in a 7-4 ruling that these types of tariffs are within the scope of Congressional powers and not the president’s authority. The court stated, “The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution.”
For now, the ruling will remain stayed until October 14, providing time for the Trump administration to appeal the case to the Supreme Court. His legal team has urged a speedy decision, highlighting the serious implications this case could have on U.S. diplomacy and national security.
“Though judicially stayed, [the ruling] raises legal uncertainty about [the President’s IEEPA] tariffs that gravely undermines the President’s ability to conduct real-world diplomacy and his ability to protect the national security and economy of the United States,” – Treasury Secretary Scott Bessent.
The appeal arises amidst other legal challenges facing Trump, including a ruling that prohibits him from deploying the National Guard or military forces in California to enforce laws. This major decision only makes the current mosaic of legal issues all the more prickly as Trump continues to travel down the road of active litigation.
Trump is used to getting slammed for his attacks on the Federal Reserve. An open letter against Trump’s hostile attempt to remove Cook from her post quickly garnered signatures from hundreds of economists, rallying to her defense. GOP senators are hesitant to hurry into considering a replacement. They are focused on clearing up the legal mess created by Trump’s actions first.
With various legal battles unfolding, the Supreme Court’s decision on Trump’s tariffs appeal could set a significant precedent regarding presidential powers in economic matters. Trump is still waiting on a ruling. In the interim, he faces resistance everywhere, but holds steady on trade and economic matters.