In a significant ruling issued May 28, a unanimous three-judge panel of the U.S. Court of International Trade (CIT) declared the Trump administration’s so-called “Liberation Day” tariffs unlawful. The Liberty Justice Center welcomes the CIT’s decision in V.O.S. Selections, Inc. v. Trump, its lawsuit challenging the Liberation Day tariffs on behalf of five small businesses.
The CIT’s decision held that the International Emergency Economic Powers Act, or IEEPA, does not confer to the President unlimited unilateral authority to impose tariffs and sets aside the challenged tariffs imposed thereunder.
The CIT held that if IEEPA did give the President the unilateral authority to impose tariffs on any country, at any rate, at any time, as the President claims, then it would likely violate the Constitution’s separation of powers, which gives the tariff authority to Congress. Although Congress can delegate some limited authority to impose tariffs to the President, it must do so clearly and with some limitations. Because courts should avoid interpreting statutes in a way that could make them unconstitutional, the CIT rejected the President’s interpretation of IEEPA.
The CIT issued one opinion for both V.O.S. Selections, Inc. v. Trump and State of Oregon v. U.S. Department of Homeland Security that applies to all of the Trump administration’s tariffs imposed under the IEEPA, not only the Liberation Day tariffs, but also the tariffs imposed on goods from China, Mexico, and Canada.
“We’re delighted by the decision of the Court of International Trade enjoining the President’s so-called “Liberation Day” tariffs,” said Jeffrey Schwab, Senior Counsel and Director of Litigation at the Liberty Justice Center. “This ruling reaffirms that the President must act within the bounds of the law, and it protects American businesses and consumers from the destabilizing effects of volatile, unilaterally imposed tariffs.”
“It’s great to see that the court unanimously ruled against this massive power grab by the President. The ruling emphasizes that he was wrong to claim a virtually unlimited power to impose tariffs, that IEEPA law doesn’t grant any such boundless authority, and that it would be unconstitutional if it did.” said Ilya Somin, Co-Counsel.
“I am elated by the ruling of the Court of International Trade in favor of our lawsuit against the Trump administration’s Liberation Day tariffs and additional tariffs. This is a win for my small business along with small businesses across America – and the world for that matter” said plaintiff Victor Schwartz. “We are aware of the appeal already filed and we firmly believe in our lawsuit and will see it all the way through to the United States Supreme Court.”
To discuss the Court’s decision, the Liberty Justice Center will be hosting a media roundtable on Thursday, May 29 9:00 A.M EDT. Please RSVP at the link here for the opportunity to hear the plaintiff counsel address the court’s opinion as well as next steps for the case.
The initial legal filing in V.O.S. Selections, Inc. v. Trump is available here.