US appeal court signals scepticism over Trump’s tariff authority

A federal appeal court just steps from the White House signalled scepticism on Thursday over whether a broad swathe of US President Donald Trump’s tariffs are legal, while lawyers representing the administration asserted that the US judiciary lacked the authority to review such “discretionary” actions.

All 11 active judges on the US Court of Appeals for the Federal Circuit in Washington – eight appointed by Democratic presidents and three by Republican administrations – heard the high-stakes arguments, in a case that has the potential to throw a wrench into Trump’s trade policy.

The hearing came just one day before Trump’s reciprocal tariffs were set to take effect on Friday. The administration warned that a ruling against the government could undermine Washington’s leverage in trade negotiations with China and other key partners.

In the coming days, the judges can either declare the tariffs illegal or side with the government in deference to the president’s authority. They can also send the case back to the lower court for further scrutiny.

The lawsuit, VOS Selections vs Trump, challenges Trump’s claim he can unilaterally impose tariffs under the International Emergency Economic Powers Act, arguing he overstepped his authority by bypassing Congress.

IEEPA gives the president power to regulate economic activity during a national emergency. No president before Trump has used the statute to justify tariffs.

Two judges in the hearing, both appointed by Democratic former US presidents, quickly signalled scepticism about Trump’s use of emergency powers to impose a broad set of tariffs, pressing Assistant Attorney General Brett Shumate, who represented the US government.