The US Court of Appeals for the Federal Circuit held that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are largely unconstitutional because the statute does not explicitly grant the President authority to impose tariffs, duties, or taxes. The court permitted the tariffs to remain in place until October 14 to allow the government to appeal to the Supreme Court. The tariffs were imposed after a presidential declaration that the US trade deficit constituted an emergency, with IEEPA invoked to address "unusual and extraordinary" threats. The ruling noted IEEPA lacks explicit mention of tariffs and clear procedural safeguards. The decision does not affect tariffs issued under other legal authorities, such as steel and aluminum measures.
"The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax," the US Court of Appeals for the Federal Circuit said. The court, however, also said the tariffs could remain in place until October 14, to allow the government to appeal the ruling to the Supreme Court.
"Trump imposed the tariffs under the International Emergency Economic Powers Act, which gives the president the power to address "unusual and extraordinary" threats during national emergencies. Trump said in April that the US importing more than it exports constituted an emergency. The country has imported more for decades. "It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs," the ruling said."
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