Federal appeals court judges bristled at President Donald Trump’s use of emergency powers to levy reciprocal tariffs in oral arguments on Thursday, news outlets reported.
The U.S. Court of Appeals for the Federal Circuit in Washington was skeptical of Trump’s use of the International Emergency Economic Powers Act, or IEEPA, to levy tariffs on Canada, Mexico, and China over the fentanyl crisis.
“IEEPA doesn’t mention the word tariffs anywhere,” Judge Jimmie Reyna told Justice Department lawyer Brett Shumate, calling that omission a major concern.
Shumate said that the law allows the president to have “extraordinary” authority in an emergency, including the ability to stop imports completely. He said IEEPA authorizes tariffs because it allows a president to “regulate” imports in a crisis.
The judges seemed dubious of this sweeping argument.
Judge Timothy Dyk said that it was hard for him to see how that was Congress’ intent when it passed the 1977 Emergency Powers Act.
“No trade law in 200 years has been interpreted to give the president this power,” attorney Neal Katyal, representing plaintiff V.O.S. Selections, told the court.
The U.S. Court of Appeals for the Federal Circuit ruled in June that Trump’s tariffs could remain in effect while it reviewed the lower court’s decision. The court said the litigation raised issues of “exceptional importance,” warranting the court to take the rare step of having the 11-member court hear the appeal, rather than have it go before a three-judge panel first. Of the 11, eight were appointed by Democrat presidents and three appointed by Republican presidents.
The court adjourned after about 90 minutes of oral arguments. The judges did not say when they would rule, and the losing side will almost certainly appeal to the Supreme Court.
Information from Reuters was used in this report.
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