Court Update on Tariffs: Federal Court Rules Presidential Tariff Authority Under IEEPA is Limited, but Tariffs to Stay in Place While Under Appellate Review
On May 28, the U.S. Court of International Trade (CIT) ruled that the President does not have an “unbounded tariff authority” under the International Emergency Economic Powers Act (IEEPA) to impose tariffs on imports from nearly every country around the world. President Trump was the first president to invoke the IEEPA — a 1977 law that primarily deals with sanctions and trade embargo — to impose a large percentage of his administration’s tariffs. The administration primarily argued that the President’s IEEPA authority is non-justiciable, meaning not subject to judicial review. The CIT’s three-judge panel found IEEPA does not authorize the President to implement what it referred to as the “trafficking,” “worldwide,” and “reciprocal” tariffs.
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