UPDATE: Donald Trump’s sweeping tariffs are about to face a critical legal test today as the US Court of Appeals for the Federal Circuit hears arguments in the urgent case of VOS Selections v Trump. This significant challenge comes just hours before a new wave of punishing import duties is set to take effect.
Four days after Trump touted a “powerful deal” with the European Union, small business owners are suing the president, claiming he lacks the legal authority to impose severe tariffs that threaten their livelihoods. The stakes couldn’t be higher as the outcome is poised to impact trade relations with major partners, including Canada and Mexico.
At the heart of the lawsuit is the International Emergency Economic Powers Act (IEEPA), a law invoked by the Trump administration to justify its tariff policy amid claims of national emergencies. However, plaintiffs argue that the IEEPA does not grant the president the power to levy tariffs, a claim supported by a federal court’s earlier ruling that deemed Trump’s actions illegal.
“The small businesses leading the suit claim that Trump has not met the rigorous standards for declaring a national emergency,”
said legal experts familiar with the case. The appeals court will examine whether Trump’s tariff strategy, a cornerstone of his economic policy, exceeds the powers granted to him under existing trade laws.
As the court convenes, the implications of the ruling could reverberate through global markets. Trump’s recent agreement with European Commission President Ursula von der Leyen to implement 15% tariffs on most EU goods entering the US is now shrouded in uncertainty. Moreover, the upcoming import duties, set to kick in tomorrow, are likely to disrupt trade significantly.
A federal court ruling in May had already indicated that Trump had overstepped his authority, but the appeals court paused that ruling pending today’s decision. If the plaintiffs prevail, it could dismantle Trump’s most significant tariff initiatives, which he has made a centerpiece of his second presidential term.
The Trump administration claims that tariffs are necessary to combat trade deficits and address issues like fentanyl trafficking. However, the court’s scrutiny of whether these reasons constitute an “unusual and extraordinary threat” under the IEEPA will be pivotal.
As the legal battle unfolds, small business owners across the nation are watching closely. The potential for higher costs and disrupted supply chains is a growing concern, impacting everyday Americans who rely on these businesses.
The outcome of this case will not only affect Trump’s tariff policies but could also set a precedent for how presidential powers are exercised in trade matters moving forward. With a 6-3 conservative majority in the Supreme Court, the final resolution of this case may ultimately rest with the highest court in the land.
Stay tuned as this urgent story develops. The implications of today’s hearing are set to shape the future of US trade policy and could have lasting effects on international relations.
