FameEX Hot Topics | Federal Court Rejects Trump Tariffs, White House Files Appeal

Former President Donald Trump has formally appealed a federal court decision that struck down his controversial "Liberation Day" tariffs, igniting a legal showdown over the extent of presidential emergency powers. The tariffs, part of Trump’s broader America-first trade strategy, were imposed under the International Emergency Economic Powers Act (IEEPA), a law historically used to sanction foreign adversaries, not levy tariffs. The U.S. Court of International Trade ruled on May 28 that Trump overstepped his authority, stating that only Congress has the constitutional power to regulate tariffs.

The White House wasted no time, filing its appeal with the U.S. Court of Appeals for the Federal Circuit. Officials quickly condemned the court’s decision, with White House spokesperson Kush Desai stating, “It is not for unelected judges to decide how to properly address a national emergency.” Deputy Chief of Staff Stephen Miller escalated the rhetoric, calling the decision a “judicial coup” in a social media post. These statements reflect the administration's firm belief that the courts should not interfere with presidential discretion during national emergencies.

Trump initially unveiled the tariffs on April 2, arguing that the United States’ trade deficit constituted an “unusual and extraordinary threat” justifying emergency action. The policy included a 10% baseline tariff on most imports and additional “reciprocal” tariffs, ranging from 11% to 50%, on goods from around 60 nations. Trump framed the move as necessary to rebalance global trade and protect American industry.

The court ruling followed lawsuits from small businesses and a coalition of states, led by Oregon. One plaintiff, wine importer V.O.S. Selections, contended that the trade deficit failed to meet the IEEPA’s emergency criteria. The lawsuits also argued that the tariffs circumvented Congress’s constitutional authority, violating the separation of powers.

Economists and business leaders warned the tariffs would raise prices and fuel inflation. JPMorgan Chase CEO Jamie Dimon noted the inflationary risks, while importers—particularly those sourcing from China—grappled with sudden cost increases. The tariffs have rippled across financial markets, impacting stocks, crypto, and commodities. Legal analysts say the appeal could ultimately reach the Supreme Court, given the case's weighty constitutional implications.

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