FameEX Hot Topics | Trump Trade Tariffs Rejected, White House Appeals Verdict

Former President Donald Trump has appealed a federal court ruling that invalidated his sweeping “Liberation Day” tariffs, setting the stage for a constitutional battle over presidential emergency powers. These tariffs, a key part of Trump’s nationalist trade agenda, were enacted using the International Emergency Economic Powers Act (IEEPA)—a law typically reserved for imposing sanctions on foreign adversaries. On May 28, the U.S. Court of International Trade ruled that Trump had exceeded his authority, stating that IEEPA does not permit tariff enforcement and reaffirming that tariff powers rest with Congress.

In response, the Trump administration swiftly filed an appeal to the U.S. Court of Appeals for the Federal Circuit. White House spokesperson Kush Desai criticized the ruling, declaring that “unelected judges” should not decide how to handle a national emergency. Deputy Chief of Staff Stephen Miller went further, describing the court’s decision as a “judicial coup” in a social media post. These statements highlight the administration’s assertion that the president must have broad discretion in addressing economic emergencies, free from judicial restraint.

Trump had introduced the tariffs on April 2, citing the U.S. trade deficit as an “unusual and extraordinary threat” warranting emergency action. The policy imposed a 10% baseline tariff on nearly all imported goods and additional “reciprocal” tariffs of 11% to 50% targeting imports from 60 countries. The move was positioned as a means to restore trade balance and strengthen domestic industries.

The legal challenge to the tariffs was led by small businesses and a coalition of states, including Oregon. Plaintiffs like wine importer V.O.S. Selections argued that the trade deficit did not meet IEEPA’s emergency threshold and accused Trump of bypassing Congress in violation of constitutional separation of powers.

Economists and corporate leaders warned that the tariffs would drive up consumer costs and contribute to inflation. JPMorgan Chase CEO Jamie Dimon emphasized inflation risks, while importers, especially those relying on Chinese goods, faced immediate cost hikes. The policy’s ripple effects have hit equities, cryptocurrencies, and commodity markets. Experts believe the case could reach the Supreme Court, with major implications for executive power in trade policy.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.