Appeals Court Questions Legality of Trump Tariffs

A federal appeals court panel expressed skepticism over President Donald Trump's authority to impose broad tariffs under the International Emergency Economic Powers Act (IEEPA), questioning whether the statute allows such actions without congressional approval and noting the unprecedented nature of this interpretation. Trump’s administration defended the tariffs as necessary for addressing national emergencies including trade deficits and fentanyl trafficking, while state attorneys general and small businesses argued these did not qualify as legitimate emergencies and that the tariffs have caused economic disruption. The case follows a lower court ruling against the administration’s tariff authority and is expected to potentially reach the Supreme Court. The court has allowed the tariffs to remain in effect during the appeal, sustaining uncertainty for businesses and affected nations. The decision could have significant consequences for the separation of powers and U.S. trade policy. Economists warn the ongoing dispute may raise costs for American consumers and disrupt the global economy.