logo
Appellate judges question Trump's authority to impose tariffs without Congress

Appellate judges question Trump's authority to impose tariffs without Congress

WASHINGTON — Appellate court judges expressed broad skepticism Thursday over President Trump's legal rationale for his most expansive round of tariffs.
Members of the 11-judge panel of the U.S. Court of Appeals for the Federal Circuit in Washington appeared unconvinced by the Trump administration's insistence that the president could impose tariffs without congressional approval, and it hammered its invocation of the International Emergency Economic Powers Act to do so.
'IEEPA doesn't even mention the word 'tariffs' anywhere,' Circuit Judge Jimmie Reyna said in a sign of the panel's incredulity at a government attorney's arguments.
Brett Schumate, the attorney representing the Trump administration, acknowledged in the 99-minute hearing 'no president has ever read IEEPA this way' but contended it was nonetheless lawful.
The 1977 law, signed by President Carter, allows the president to seize assets and block transactions during a national emergency. It was first used during the Iran hostage crisis and has since been invoked for a range of global unrest, from the 9/11 attacks to the Syrian civil war.
Trump says the country's trade deficit is so serious that it likewise qualifies for the law's protection.
In sharp exchanges with Schumate, appellate judges questioned that contention, asking whether the law extended to tariffs at all and, if so, whether the levies matched the threat the administration identified.
'If the president says there's a problem with our military readiness,' Chief Circuit Judge Kimberly Moore posited, 'and he puts a 20% tax on coffee, that doesn't seem to necessarily deal with [it].'
Schumate said Congress' passage of IEEPA gave the president 'broad and flexible' power to respond to an emergency, but that 'the president is not asking for unbounded authority.'
But an attorney for the plaintiffs, Neal Katyal, characterized Trump's maneuver as a 'breathtaking' power grab that amounted to saying 'the president can do whatever he wants, whenever he wants, for as long as he wants so long as he declares an emergency.'
No ruling was issued from the bench. Regardless of what decision the judges' deliberations bring, the case is widely expected to reach the U.S. Supreme Court.
Trump weighed in on the case on his Truth Social platform, posting: 'To all of my great lawyers who have fought so hard to save our Country, good luck in America's big case today. If our Country was not able to protect itself by using TARIFFS AGAINST TARIFFS, WE WOULD BE 'DEAD,' WITH NO CHANCE OF SURVIVAL OR SUCCESS. Thank you for your attention to this matter!''
In filings in the case, the Trump administration insists that 'a national emergency exists' necessitating its trade policy. A three-judge panel of the U.S. Court of International Trade, a specialized federal court in New York, was unconvinced, ruling in May that Trump exceeded his powers.
The issue now rests with the appeals judges.
The challenge strikes at just one batch of import taxes from an administration that has unleashed a bevy of them and could be poised to unveil more on Friday.
The case centers on Trump's so-called Liberation Day tariffs of April 2 that imposed new levies on nearly every country. But it doesn't cover other tariffs, including those on foreign steel, aluminum and autos, nor ones imposed on China during Trump's first term and continued by President Biden.
The case is one of at least seven lawsuits charging that Trump overstepped his authority through the use of tariffs on other nations. The plaintiffs include 12 U.S. states and five businesses, including a wine importer, a company selling pipes and plumbing goods, and a maker of fishing gear.
The U.S. Constitution gives the Congress the authority to impose taxes — including tariffs — but over decades lawmakers have ceded power over trade policy to the White House.
Trump has made the most of the power vacuum, raising the average U.S. tariff to more than 18%, the highest rate since 1934, according to the Budget Lab at Yale University.
Wiseman and Sedensky write for the Associated Press. Sedensky reported from New York.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Editorial: More unlawful tariffs: Trump has no authority to institute damaging trade barriers
Editorial: More unlawful tariffs: Trump has no authority to institute damaging trade barriers

Yahoo

time28 minutes ago

  • Yahoo

Editorial: More unlawful tariffs: Trump has no authority to institute damaging trade barriers

On Friday, Donald Trump followed up a concerning jobs report with massive new global tariffs, driving markets down and once more raising prices on consumers for no reason after weeks of supposed trade negotiations. Like with his first round of import duties, announced in the Rose Garden on his ludicrous April 2 'Liberation Day,' these tariffs are not only chaotic and destructive, but they're illegal. The president is leaning on a 1977 law meant to be invoked for targeted financial actions in certain emergency circumstances to reshape trade globally. Just the day before these newest tariffs were implemented, the administration's lawyers had been grilled by the 11 judges of the U.S. Court of Appeals for the Federal Circuit in Washington, who pointed out among other things that the law doesn't even mention tariffs at all. If the plaintiffs, made up of states and businesses, need anywhere to look for inspiration and evidence for their legal arguments, they don't have to look much further than Trump's own ramblings and social media feed, where he constantly tells the whole world that he is engaging in the tariff actions for all manner of reasons completely unrelated to any economic objectives. So far, he's threatened tariffs over Brazil's domestic prosecution of its former president Jair Bolsonaro and over Canada's intent to recognize a Palestinian state, among other things. This is a real disparate set of rationales, but what they have in common is that they are ideological battles probably drawn from something Trump saw on TV and have nothing to do with correcting a supposed trade imbalance with those countries, already an incredibly flimsy argument to begin with. Don't just take our word for it; the Manhattan-based U.S. Court of International Trade — you know, the judicial entity set up specifically and explicitly to have expertise on these matters — already struck down most of Trump's tariff regime on the grounds that it was unlawful. That ruling has been stayed for now, but the evidence just keeps piling on that Trump is significantly exceeding his authority. Unfortunately, even if this insanity were to be fully struck down tomorrow, we've had months of chaos that has indelibly damaged trade relationships as well as general diplomatic relations. The world is not going to wait for the U.S. to hash out its chaos, and other countries are already moving to reorient parts of their manufacturing and trade schemes to circumvent an unreliable United States. Of course, this seems like one more issue headed at some point to the U.S. Supreme Court, perhaps the shadow docket where the court these days like to conduct its unsigned pro-Trump business. It's long since become clear that the high court is more interested in ideological outcomes than the uniform application of the law, but even then, siding with Trump here would be farcical. This is the exact same court that just last year ruled that Joe Biden attempting to clear some student debt by invoking emergency powers in the context of the COVID pandemic — a real global catastrophe that killed countless people and crashed the economy while putting millions out of work — was an unlawful exercise of authority. If that's the case, but Trump is in his rights to wildly alter tariff policies at a whim in service to random political grievances around the world, then the law truly means nothing anymore. Let's stop this madness while we still can, before economic forces take it out of our hands. ___

'Mark My Words': George Conway's Chilling Trump Prediction Is 'Just A Matter Of Time'
'Mark My Words': George Conway's Chilling Trump Prediction Is 'Just A Matter Of Time'

Yahoo

timean hour ago

  • Yahoo

'Mark My Words': George Conway's Chilling Trump Prediction Is 'Just A Matter Of Time'

Conservative attorney George Conway warned that President Donald Trump is steering the nation toward a constitutional crisis. Conway, a longtime Trump critic, shared a report on political turmoil in Israel, where the government of Prime Minister Benjamin Netanyahu voted to fire the attorney general who is prosecuting him in a corruption case. The Supreme Court blocked the firing pending judicial review, but one government minister said they would ignore that decision. Conway warned that Trump might try that next in the United States. 'Mark my words,' he wrote on X. 'Trump will defy our Supreme Court too. It's just a matter of time.' Mark my words: Trump will defy our Supreme Court too. It's just a matter of time. — George Conway 👊🇺🇸🔥 (@gtconway3d) August 4, 2025 Trump and his administration have repeatedly attacked judicial rulings, slow-walking and in some cases threatening to ignore orders, especially in the case of Kilmar Abrego Garcia, an immigrant wrongly sent to a prison in El Salvador.

Trump hikes tariffs on Canada to 35%, announces rates from 10% to 40% for dozens of countries
Trump hikes tariffs on Canada to 35%, announces rates from 10% to 40% for dozens of countries

Yahoo

timean hour ago

  • Yahoo

Trump hikes tariffs on Canada to 35%, announces rates from 10% to 40% for dozens of countries

The White House took a step forward with President Trump's plan to remake the trade landscape by releasing new details Thursday evening that included a raft of new tariff rates, now formally authorized by executive order, which set levels from 10% to 40% on nearly every global trading partner. The move represents a giant shakeup in the US's trade order, outlining a 35% tariff on Canada (up from 25% currently) as well as rates above 30% on nations from South Africa to Switzerland. Swiss manufacturers warned Friday that tens of thousands of jobs are at risk after President Trump imposed steep tariffs. But there's a last-minute catch: Nearly all these new rates (except for Canada's) will not go into effect for seven days, instead of a midnight Friday deadline Trump had previously set. "These modifications shall be effective ... on or after 12:01 a.m. eastern daylight time 7 days after the date of this order," reads the now signed order. Read more: The latest news and updates on Trump's tariffs The new tariff rate on Canada is under a different order focused on illicit drugs and will take effect Friday as originally planned. For other nations, the order also allows for an additional delay, with lower, previous rates applied to goods that are loaded onto ships before Aug. 7 that then enter the United States before Oct. 5. But once the new tariffs are in effect, they will be far-reaching. Global stocks fell Friday as Trump imposed tariffs on dozens of countries, advancing his effort to reshape global trade. India, after initial high hopes for a deal that have been bogged down in recent weeks, is set to face a 25% rate, though negotiators there now appear to have another week to make offers. Neighboring Bangladesh secured a 20% US export tariff, down from Trump's proposed 37%. Taiwan is another top US trading partner and is set to see a 20% rate. The White House documentation released Thursday also confirmed some of the parameters of recent deals with other top trading partners, including a 15% rate on the European Union, South Korea, and Japan. It also confirmed that 19%-20% rates are in the offing for a range of Southeast Asian nations, and an unchanged 10% rate is set for the United Kingdom. Thursday's advancement did come after one significant tariff delay Thursday: a 90-day pause on new tariffs on Mexico, as the president decided to keep rates at 25% after a 'very successful' phone call, according to Trump. Read more: What Trump's tariffs mean for the economy and your wallet Dozens of other smaller trading partners saw their tariff rates upped to 15% from 10%, and some nations were not included in Tuesday's release. Those excluded countries included many nations with which the US currently has a trade surplus. They are set to see their rates remain at 10%, a surprise for some after comments from Trump in recent days suggested 15% would be his new minimum. Thursday's order also includes a focus on the growing issue of transshipping, promising an additional tariff of 40% for any goods deemed 'to have been transshipped to evade applicable duties' without providing a further definition on what would meet that standard. Thursday's announcement comes as previously announced 50% levies on copper are also set to go into effect at midnight as well alongside the new Canadian duties. Copper (HG=F) prices edged higher on Friday but were on track for a weekly drop in London as the market digested President Trump's decision. The White House also has plans for 50% tariffs on Brazil, which are set to be fully in effect one day sooner, as that order is operating under its own seven-day clock that began Wednesday. The rapid-fire tariff moves also came as small business importers and the US Justice Department clashed Thursday over whether Trump even has the authority to take these actions. Trump's team relied on the 1977 International Economic Emergency Powers Act to move around the rates, saying it authorizes the president to 'regulate' international commerce after declaring a national emergency. It's also the latest culmination of Trump's intense second-term focus on tariffs. He declared, "I am a tariff man" back in 2018 and has gone much further in his second term. The latest calculations from the Yale Budget Lab found that these new duties, before Thursday's adjustments, suggested consumers already face an overall effective tariff rate of 18.4%, which is the highest rate since 1933. That figure is sure to rise in the coming days as the new tariff levels are digested. The duties — as Trump himself notes almost every day — have also already set multiple new tariff revenue records, even at the previous levels centered around a 10% floor for tariffs. As Trump put it on Thursday, 'Tariffs are making America GREAT & RICH Again,' adding that lower levels seen in previous decades were hurting America and 'now the tide has completely turned.' Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store