Court rules against Trump’s IEEPA tariffs 

In a decision that could have implications for agricultural imports and exports, the U.S. Court of Appeals for the Federal Circuit ruled Friday 7 to 4 that President Trump went too far when he imposed tariffs under the 1977 International Emergency Economic Powers Act, or IEEPA, by declaring longstanding U.S. trade deficits “a national emergency.”

The appeals court upheld an earlier decision by the Court of International Trade that Trump’s use of IEEPA was illegal.

The case was brought to the Court of International Trade on behalf of V.O.S. Selections, a small New York liquor importer, and four other companies, plus 12 states: Oregon, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York and Vermont.

Trump noted on social media that the court had left the tariffs in effect pending an expected appeal to the Supreme Court. “If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong,” Trump wrote.

CBS News said in an analysis, “The ruling represents a major setback for Mr. Trump, who has said his trade policies will enrich the U.S. by bringing back manufacturing jobs and contributing billions in new revenue for the federal government.”

National Foreign Trade Council President Jake Colvin said, “It’s positive to see the appeals court confirm the lower court ruling that the administration wrongfully invoked IEEPA to implement global tariffs. However, it is still unclear whether businesses will see any relief from this decision as the appeals process continues.”

“If these tariffs are ultimately struck down, it ought to serve as a wake up call for Congress to reclaim its constitutional mandate to regulate duties and bring some long-term certainty for U.S. businesses and relief for consumers,” Colvin said.

“While the court’s ruling ought to serve as an opportunity for the administration to pivot, given the president’s affinity for tariffs as a trade and foreign policy tool, it’s likely they will seek to leverage other authorities to continue to impose high duties, limiting any relief for businesses and consumers.”