Federal Circuit Takes Center Stage in Trump’s Tariff Campaign

by Dennis Crouch

On May 28, 2025, the Court of International Trade issued a sweeping permanent injunction against President Trump's unilateral global tariffs, only to have the Federal Circuit grant an immediate administrative stay in a rare en banc order.  The stay is likely to remain in place only for about two weeks as the Court considers (likely en banc) whether to allow the tariffs to remain in place while it considers the merits of the U.S. government's appeal.  The dispute centers on fundamental questions about the scope of presidential emergency powers under the International Emergency Economic Powers Act (IEEPA) and represents one of the most significant judicial challenges to executive trade authority in decades.

The Court of International Trade's decision in V.O.S. Selections, Inc. v. United States, Slip Op. 25-66 (Ct. Int'l Trade May 28, 2025) [CIT Decision], struck down both President Trump's "Worldwide and Retaliatory Tariffs" and his "Trafficking Tariffs" as exceeding congressional delegation of authority.  The underlying legal framework is that the U.S. Constitution grants Congress, not the President, authority to set tariffs.  However, Congress has expressly delegated aspects of that authority to the President - most particularly under IEEPA, which authorizes the President to "regulate . . . importation" of foreign goods during declared national emergencies to address "unusual and extraordinary threat[s]" to national security, foreign policy, or the economy. 50 U.S.C. § 1702(a)(1)(B), § 1701(a). Congress enacted IEEPA in the 1970s after determining that President Nixon had abused a prior, more expansive delegation under the Trading with the Enemy Act (TWEA). See United States v. Yoshida Int'l, Inc., 526 F.2d 560 (C.C.P.A. 1975).