Latest news with #VOSSelections
Wall Street Journal
31-07-2025
- Politics
- Wall Street Journal
A Rough Day in Court for Tariffs
Well, that was painful. For the Trump Administration's lawyer, that is. The U.S. Court of Appeals for the Federal Circuit on Thursday heard oral arguments in a challenge to President Trump's worldwide tariffs (V.O.S. Selections, Inc. v. Trump). Judge after judge doubted the Administration's arguments. The Administration says the 1977 International Emergency Economic Powers Act grants a President sweeping authority to impose tariffs. The 11 judges were mostly skeptical. Out of the gate one judge pointed out that no President has ever used the emergency law to impose tariffs.
Forbes
31-07-2025
- Business
- Forbes
Trump Tariffs: Appeals Court Hears Lawsuit Over Tariffs' Legality Today—What To Know
A federal appeals court will hear oral arguments Thursday over whether President Donald Trump's sweeping 'Liberation Day' tariffs are legal—one day before the government's harsher tariff rates take effect, though the court isn't expected to rule quickly enough to stop them. President Donald Trump displays a signed executive order imposing tariffs on April 2 in Washington, DC. Getty Images The U.S. Court of Appeals for the Federal Circuit will hold a hearing in VOS Selections, Inc. v. Trump, a lawsuit brought by small businesses that argues Trump exceeded his authority by imposing his 'Liberation Day' tariffs on nearly all countries. The Trump administration appealed a lower court ruling in the case that found the tariffs are unlawful and should be blocked, and the appeals court allowed the tariffs to take effect while it deliberates. The plaintiffs argue Trump doesn't have authority to impose his tariffs under the International Emergency Economic Powers Act (IEEPA), the law the president pointed to in his order on the tariffs, which gives presidents broad power to enact certain economic sanctions during national emergencies. While Trump claims the U.S.' trade deficits with other countries constitutes an emergency that justifies invoking the law, the businesses argue IEEPA doesn't give the president any power to impose tariffs—and even if it did, the trade deficits are not a qualifying emergency. Appeals court judges will decide whether they agree with the Court of International Trade, which ruled in May that Trump can't impose tariffs under IEEPA and 'any interpretation of IEEPA that delegates unlimited tariff authority is unconstitutional.' The court will hear arguments Thursday but is not expected to issue a decision from the bench, so any decision over the tariffs' legality is most likely to come after Friday, when the Trump administration's pause on the worst of its 'Liberation Day' tariffs is set to expire. In a Truth Social post on Thursday morning, Trump wrote: '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.' What To Watch For It's unclear how long it will take the appeals court to rule in the case, and whether or not it will agree with the Court of International Trade and block the tariffs. The tariffs will remain in effect in the meantime. Bloomberg previously noted the Federal Circuit has historically been deferential to presidents on tariffs in the past, though it remains to be seen whether that will be the case this time. The VOS Selections case is also one of several lawsuits over the 'Liberation Day' tariffs that are still pending in court, along with other lawsuits brought by companies and Democratic state attorneys general. One of those lawsuits, Learning Resources Inc. v. Trump, has also resulted in a court ruling finding Trump's tariffs likely unlawful, though an appeals court has similarly let the tariffs stay in effect for now. Legal experts have long expected it will ultimately be up to the Supreme Court to determine the legality of Trump's tariffs, and whichever party the appeals court rules against is likely to ask the high court to take up the case. The businesses that brought the Learning Resources lawsuit have already asked the Supreme Court to hear their case—even before the appeals court can rule on it—asking justices in June to hear the case on an expedited basis as soon as the court's term begins in the fall, or even sooner. The Supreme Court rejected that request, but that doesn't mean justices won't agree to hear that lawsuit or any other tariff disputes in the future. News Peg Trump's full 'Liberation Day' tariffs are scheduled to take effect Friday, after the president initially paused the worst of the tariffs back in April. The higher rate only briefly took effect on April 9, with Trump pausing it hours later after the stock market plunged and leaving only a baseline 10% rate in effect. The president has vigorously defended his tariffs, which have become the centerpiece of his economic agenda despite concerns from economists that they could raise prices for consumers and harm the economy. The Trump administration has tried to reach trade deals during the pause, but while agreements with some major trading partners like the European Union and Japan have been announced, the government failed to reach the '90 deals in 90 days' that officials had initially promised. Trump ultimately imposed new tariff rates on some countries, rather than reaching negotiated deals, and officials have suggested other countries may just go back to the tariff rate Trump initially imposed in April when the pause expires. The pause was initially supposed to end in early July, but Trump extended it until Aug. 1 as his administration scrambled to reach last-minute deals. It remains to be seen whether the pause could be extended again, or if a second pause could be announced after the tariffs take effect. Trump's history of flip-flopping on tariffs has made critics skeptical they'll take effect and markets have so far not plunged like they did in April, as Wall Street has dubbed the president 'TACO Trump' for 'Trump always chickens out' on tariffs. Trump has so far insisted his tariffs will take effect Friday as planned, however, writing on Truth Social on Wednesday that the Aug. 1 deadline 'stands strong, and will not be extended.' Further Reading Forbes Trump Says He Won't Extend Tariff Pause Past Aug. 1—Sets 25% Rate For India By Sara Dorn Forbes Trump's 'Liberation Day' Tariffs Struck Down In Court—U.S. Stock Futures Surge By Alison Durkee Forbes Trump Claims 'Great And Important' Tariff Court Win: Here's Why That's Wrong By Alison Durkee Forbes Supreme Court Asked To Take Up Trump's 'Liberation Day' Tariffs By Alison Durkee Forbes Trump 'TACO' Tracker: Here Are The President's 28 Tariff Flip-Flops By Alison Durkee
South China Morning Post
31-07-2025
- Business
- South China Morning Post
Court in Washington to hear arguments on legality of Trump ‘reciprocal' tariffs
A federal appeals court just steps from the White House could derail US President Donald Trump's 'reciprocal' tariffs before they take effect on Friday, a move that could weaken Washington's leverage in trade talks with China and other key partners. The US Court of Appeals for the Federal Circuit will hear arguments on Thursday in Washington on whether the tariffs can survive legal scrutiny. The lawsuit, V.O.S. Selections v. Trump, challenges Trump's claim he can unilaterally impose tariffs under the International Emergency Economic Powers Act, arguing he overstepped his authority by bypassing Congress. IEEPA gives the president power to regulate economic activity during a national emergency. No president before Trump has used the statute to justify tariffs. The case consolidates two lawsuits: one filed by 12 states led by Oregon, the other by five small American businesses. The lead plaintiff, V.O.S. Selections, is a New York-based wine importer. In addition to Oregon, states named as plaintiffs include Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York and Vermont. The legal challenge also targets Trump's February decision to impose 20 per cent to 25 per cent fentanyl-related tariffs on imports from China, Mexico and Canada.
The Guardian
29-07-2025
- Business
- The Guardian
Trump's tariffs to face major court test brought by US small business owners
Donald Trump's strategy of imposing sweeping tariffs on America's main trading partners will face a major test in the US courts on Thursday, four days after the president hailed the 'powerful deal' reached with the EU and just hours before a new round of punishing import duties is set to come into effect. Trump has underpinned his tariff policy with an emergency power that is now being challenged as unlawful in the federal courts. On Thursday the US court of appeals for the federal circuit will hear oral arguments in the case, VOS Selections v Trump. A group of small business owners are suing the US president on grounds that he lacks legal authority from Congress to impose severe tariffs that could damage their bottom line. The Trump administration has invoked a 1977 law, the International Emergency Economic Powers Act (IEEPA), claiming that various national emergencies – including US trade deficits with trading partners and the scourge of fentanyl trafficking – demand urgent action. But the plaintiffs have countered that the IEEPA does not give the president the power to impose tariffs, and has never been used in such a way in its almost half a century on the statute books. The case has the potential to derail Trump's most significant tariff deals and negotiations, which he has made a centrepiece of his second presidency. Given how much is riding on it, the suit is likely eventually to be settled by the US supreme court under its current 6-3 supermajority of hard-right justices. In the short term, the challenge under the IEEPA looms as a black cloud over Trump's desire to claim victory on the tariff front, as his controversial strategy of slapping hefty import duties on major trading partners continues to roil global trade and markets. On Sunday, Trump struck a deal at his golf club in Scotland with the European Commission chief, Ursula von der Leyen, that will see 15% import tariffs on most EU goods entering the US. Then on Friday, a day after the appeals court hears oral arguments, Trump's latest round of potentially destabilizing import duties is set to kick in. The targeted countries include some of the biggest suppliers of US imports, including Canada and Mexico. Trump's tariff gamble has already been deemed to be illegal by a federal court, which ruled in May that the president had overshot his powers under trade laws. That ruling was paused by the appeals court that will be hearing the case on Thursday, pending its decision. Sign up to This Week in Trumpland A deep dive into the policies, controversies and oddities surrounding the Trump administration after newsletter promotion The IEEPA gives the president the authority to regulate transactions with foreign countries, but only under a narrow set of circumstances. In particular, the power can only be wielded where there is an 'unusual and extraordinary threat with respect to which a national emergency has been declared'. The small businesses leading the suit claim that Trump has not met such a rigorous standard, and that his tariffs are thus unlawful.
The Guardian
28-07-2025
- Business
- The Guardian
Trump's tariffs to face major court test brought by US small business owners
Donald Trump's strategy of imposing sweeping tariffs on America's main trading partners will face a major test in the US courts on Thursday, four days after the president hailed the 'powerful deal' reached with the EU and just hours before a new round of punishing import duties is set to come into effect. Trump has underpinned his tariff policy with an emergency power that is now being challenged as unlawful in the federal courts. On Thursday the US court of appeals for the federal circuit will hear oral arguments in the case, VOS Selections v Trump. A group of small business owners are suing the US president on grounds that he lacks legal authority from Congress to impose severe tariffs that could damage their bottom line. The Trump administration has invoked a 1977 law, the International Emergency Economic Powers Act (IEEPA), claiming that various national emergencies – including US trade deficits with trading partners and the scourge of fentanyl trafficking – demand urgent action. But the plaintiffs have countered that the IEEPA does not give the president the power to impose tariffs, and has never been used in such a way in its almost half a century on the statute books. The case has the potential to derail Trump's most significant tariff deals and negotiations, which he has made a centrepiece of his second presidency. Given how much is riding on it, the suit is likely eventually to be settled by the US supreme court under its current 6-3 supermajority of hard-right justices. In the short term, the challenge under the IEEPA looms as a black cloud over Trump's desire to claim victory on the tariff front, as his controversial strategy of slapping hefty import duties on major trading partners continues to roil global trade and markets. On Sunday, Trump struck a deal at his golf club in Scotland with the European Commission chief, Ursula von der Leyen, that will see 15% import tariffs on most EU goods entering the US. Then on Friday, a day after the appeals court hears oral arguments, Trump's latest round of potentially destabilizing import duties is set to kick in. The targeted countries include some of the biggest suppliers of US imports, including Canada and Mexico. Trump's tariff gamble has already been deemed to be illegal by a federal court which ruled in May that the president had overshot his powers under trade laws. That ruling was paused by the appeals court that will be hearing the case on Thursday, pending its decision. Sign up to This Week in Trumpland A deep dive into the policies, controversies and oddities surrounding the Trump administration after newsletter promotion The IEEPA gives the president the authority to regulate transactions with foreign countries, but only under a narrow set of circumstances. In particular, the power can only be wielded where there is an 'unusual and extraordinary threat with respect to which a national emergency has been declared'. The small businesses leading the suit claim that Trump has not met such a rigorous standard, and that his tariffs are thus unlawful.
