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Why Trump’s Tariffs Are in Trouble

UNITED STATES, AUG 4 – The Federal Circuit panel expressed doubts over Trump's claim to tariff authority under a 1977 emergency law as the case may reach the Supreme Court this fall.

  • On August 7, updated tariffs announced by President Trump are set to take effect amid ongoing federal lawsuits challenging their legality.
  • These tariffs stem from President Trump's unprecedented invocation of a 1977 federal law that grants the president emergency authority over economic matters, which he used to declare a national emergency based on concerns about trade imbalances.
  • Federal judges, including an 11-judge Appeals Court panel, expressed skepticism about whether IEEPA grants the president authority to impose such broad tariffs without clear congressional authorization.
  • Assistant Attorney General Brett Shumate acknowledged that using IEEPA to impose tariffs is unprecedented, while attorney Neal Katyal described the administration’s broad interpretation of presidential authority under the statute as an extraordinary expansion of power not seen in two centuries.
  • The outcome could reshape executive trade powers, as courts consider separation of powers issues and the Supreme Court may soon review the case.
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The Dispatch broke the news in on Monday, August 4, 2025.
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