Summary
- Court ruled Trump exceeded tariff authority under IEEPA.
- Tariffs deemed largely illegal but remain during appeal.
- Case challenged sweeping tariffs on many foreign nations.
- Court limits the president's power to impose broad tariffs.
The court ruled that President Trump was not permitted to apply tariffs under the International Emergency Economic Powers Act (IEEPA). President Trump did this by using the authority granted to Congress by Article I of the Constitution.
The court upheld the declaratory relief granted by the US Court of International Trade (CIT), holding that the executive directives are "invalid as contrary to law."
Neal Kaytal, the plaintiffs' attorney in this lawsuit, applauded the court's ruling:
“It’s a win for the American Constitution, that our founders basically said that decisions that are major over things like taxation have to be done by the Congress, not by the president and the stroke of his pen […] I think the court overwhelmingly today, in a 7-4 decision, rejected President Trump’s notion that he can do whatever he wants whenever he wants.”
On Truth Social, President Trump nodded to the country’s highest court in possibly intervening on the appeals court’s ruling:
“ALL TARIFFS ARE STILL IN EFFECT! Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed…If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak…Now, with the help of the United States Supreme Court, we will use them to the benefit of our Nation, and Make America Rich, Strong, and Powerful Again!”
The court postponed its ruling until October 14 in anticipation of the Trump Administration's anticipated appeal.
The CIT received complaints from five small firms in April regarding Trump's executive orders that changed Congress's tariff schedules for China, Canada, and Mexico.
The complaint claimed that the tariffs' implementation had "severely harmed" the companies. 12 states joined the private plaintiffs in the same month, voicing their complaints with the case's reciprocal and trafficking tariffs. In anticipation of government appeals, the US Court of Appeals for the Federal Circuit delayed the lower court's rulings on June 11.
How did the Federal Circuit differ from the Court of International Trade?
The Court of International Trade is a federal trial-level court that primarily adjudicates civil cases involving international trade and customs laws, such as disputes over tariffs, import duties, and trade enforcement. The Federal Circuit is an appellate court with nationwide jurisdiction that hears appeals exclusively from the CIT and other specialized courts and agencies.
It does not have geographic jurisdiction like other appellate circuits but subject-matter jurisdiction. The Federal Circuit provides the final appellate review over trade cases initially decided by the CIT, ensuring uniformity and consistency in interpreting trade laws and regulations.
The Federal Circuit's jurisdiction includes patents, trademarks, government contracts, and international trade, making it broader than the CIT’s scope.