The Federal Circuit Court of Appeals held聽聽last Thursday in the leading challenge to President Trump鈥檚 International Emergency Economic Powers Act聽tariffs.

The background: In this consolidated case,聽V.O.S. Selections v. Trump聽补苍诲听Oregon v. Trump,聽the question before the court is whether President Trump鈥檚 global reciprocal tariffs and fentanyl tariffs exceed his authority under IEEPA.

• The appeal follows a May decision by the Court of International Trade to聽聽the tariffs after concluding that IEEPA 鈥渄oes not authorize the president to impose unbounded tariffs鈥濃�攁 decision that the Federal Circuit put on ice pending appeal.

The arguments: The Federal Circuit argument focused on the text of IEEPA, which does not expressly mention tariffs and limits the exercise of executive power to address 鈥渆xtraordinary and unusual鈥� threats.

• Although the court appeared split on whether IEEPA allows the president to impose tariffs, most of the 11-judge panel seemed unwilling to accept that IEEPA authorizes the sweeping global tariffs at issue here.

The precedent: The government鈥檚 case relied heavily on the closest relevant precedent鈥攖he 1975 decision in聽U.S. v. Yoshida International鈥攚hich upheld President Nixon鈥檚 use of the Trading with the Enemy Act (IEEPA鈥檚 predecessor) to place a 10% ad valorem tariff on all imports after the U.S. withdrew from the gold standard.

• The judges accused the administration of 鈥渋gnoring the parts of聽Yoshida鈥澛爄t doesn鈥檛 like, including the聽驰辞蝉丑颈诲补听court鈥檚 express limitations on the president鈥檚 tariff authority.
• The court in that case carefully distinguished between a time-limited tariff 鈥渁s a temporary measure calculated to help meet a particular national emergency, which is quite different from imposing whatever tariff rates he deems desirable.鈥�

What鈥檚 next: 鈥淎lthough it is always difficult to predict judicial outcomes, we expect a decision against the Trump administration though not unanimous,鈥� said 51吃瓜网 Vice President and Deputy General Counsel Erica Klenicki.

• 鈥淣early two dozen amicus briefs were filed in the case, including by members of Congress, legal scholars and think tanks from across the country. Given the high stakes and novel legal questions involved, we fully expect this case to end up before the U.S. Supreme Court next term.”