Trump's Tariffs Face Legal Challenge as Court Questions Emergency Powers

The legality of the extensive global tariffs imposed by Donald Trump is under scrutiny. A federal appeals court held a hearing on Thursday, just a day before higher tariffs on multiple countries were set to take effect.

A panel of 11 judges questioned a senior official from the U.S. Department of Justice, focusing on the Trump administration's claim that the country's persistent trade deficit constitutes a national emergency. This claim allows the president to bypass Congress and impose tariffs on multiple countries.

The official from the Department of Justice's Civil Division, Brett Shumate, stated during the hearing that Trump's tariff policy aimed to address "the consequences of our ever-expanding trade deficit" and to enable the president to "put pressure on other countries." He added that Trump had determined that the trade deficit had reached a "critical point."

Several judges on the panel raised sharp objections to the government's position. Judge Alan David Lourie, appointed by George W. Bush, noted that tariffs seemed to have "no basis" in the text of the emergency law. Judge Jimmie Reyna, appointed by Obama, questioned why Congress would pass so many laws to explicitly grant the president the power to impose tariffs in specific situations if the International Emergency Economic Powers Act (IEEPA) could be used so broadly.

The hearing lasted nearly two hours, with no immediate ruling. A decision could be announced in the coming weeks, and the case may ultimately be referred to the Supreme Court, drawing the justices into another legal dispute over Trump's agenda.

Although the U.S. Court of International Trade supported claims by several Democrat-led states and small businesses in May that the Trump administration had incorrectly invoked an emergency law as the basis for the tariffs, these tariffs remain temporarily in place. The U.S. Court of Appeals for the Federal Circuit will now determine whether these tariffs are constitutional, with billions of dollars in global trade at stake.

Reyna questioned, "If the president has this unlimited power under IEEPA, then why does he need to rely on all these trade regulations?" The controversial tariffs may remain in place for weeks or months until a final decision is made, adding to the financial uncertainty for businesses.

U.S. trade negotiators continue to reach agreements with countries seeking to lower tariffs. Trump announced agreements with Japan and the European Union in the past week, following previous agreements with the Philippines and Vietnam.

Trump posted on Truth Social on Thursday, wishing his lawyers good luck in "the big case in the U.S. today." He stated, "If our country cannot use tariffs to protect itself, we are 'doomed,' with no chance of survival or success. Thank you all for your attention to this matter!"