Federal Circuit Upholds Ruling on Trump Administration's Tariffs as Unlawful

Strategic Insights -

The majority of the U.S. Court of Appeals for the Federal Circuit en banc panel held that the Trump Administration's "Reciprocal" and "Trafficking" tariff regimes are unlawful, affirming the conclusion of the U.S. Court of International Trade that these tariff regimes are not authorized by the International Emergency Economic Powers Act, or IEEPA. The court also provided the government until October 14 to petition for Supreme Court review and confirmed that the current tariffs remain in effect at least until then.

The Federal Circuit's analysis was limited to the specific tariff regimes before the courts, which are broad but do not address more recent tariff actions taken under IEEPA, including those with respect to Brazil or India, nor do they address recent tariffs imposed pursuant to other statutory authorities.

Key Takeaways:

  • The majority of the Federal Circuit en banc panel held that the Trump Administration's "Reciprocal" and "Trafficking" tariff regimes are unlawful, affirming the conclusion of the U.S. Court of International Trade.
  • The court's analysis was limited to the specific tariff regimes before the courts, which are broad but do not address more recent tariff actions taken under IEEPA.
  • The majority found that the President's power to "regulate...importation" under 50 U.S.C. § 1702 does not encompass the power to impose the Reciprocal or Trafficking tariff regimes.
  • The majority Judges split seven-to-four in their assessment of the legality of the tariff regimes presented for review.
  • A four-Judge minority concluded that summary judgment against the government was unwarranted, placing significant weight on the implication of the "foreign affairs doctrine."
  • The majority invoked Constitutional considerations, noting that the U.S. Constitution vests the power to impose taxes - including tariffs - exclusively in the Legislative Branch.
  • The August 29 opinion was highly anticipated and has significant implications for the future of trade dealmaking.

Statistics:

  • The Reciprocal tariffs are near-global in their reach.
  • The three Trafficking tariff regimes affect products of Canada, China, and Mexico, respectively.
  • The Federal Circuit en banc panel held that there is no express or obvious conferral of tariff-making authority in IEEPA.
  • Seven Judges voted in the majority, while four Judges dissented in the assessment of the legality of the tariff regimes.

Sources:

  • "Yankee Download" (2025) ([author's name] available at).
  • "Understanding the U.S. Tariffs on Imports" (2025) ([author's name] available at).
  • https://www.mondaq.com
  • James E. Ransdell Cassidy Levy Kent 900 19th Street, NW Fourth Floor Washington, DC 20006 UNITED STATES Tel: 202567 2300 Fax: 202567 2301 E-mail: asellers@cassidylevy.com URL: www.cassidylevy.com