Federal Circuit Upholds Ruling on Trump's "Emergency" Tariffs, Injecting Uncertainty into US Trade Relations

Strategic Insights -

The United States Court of Appeals for the Federal Circuit (CAFC) has upheld the Court of International Trade's (CIT) ruling that President Donald Trump's "emergency" tariffs exceeded his statutory authority under the International Emergency Economic Powers Act (IEEPA). This decision, issued on August 29, 2025, has significant implications for businesses, injecting substantial uncertainty into US trade relations. The CAFC's opinion analyzed the statutory text and history of IEEPA and found that there was no clear congressional authorization for tariffs of the magnitude imposed by President Trump. The decision affirms the CIT's holding that the tariffs were unlawful but vacates the CIT's injunction and remands for reconsideration.

Key Takeaways:

  • The CAFC upheld the CIT's decision that President Trump's "emergency" tariffs exceeded his statutory authority under IEEPA.
  • The decision affirms that tariffs are a core congressional power and any attempts by the executive to use IEEPA to justify tariffs with significant impacts would run afoul of the nondelegation and major questions doctrines.
  • The CAFC found that the tariffs imposed by President Trump were not narrowly tailored to address a national emergency and were not authorized by IEEPA.
  • The decision does not disturb any other IEEPA tariffs currently in effect, but its language could apply with equal force to invalidate those tariffs as well.
  • Importers should continue to monitor the litigation and examine the scope of any remedy granted, including via any remand proceedings before the CIT, if the tariffs are ultimately declared unlawful.
  • Steptoe's Trade Policy team can help businesses navigate these developments, assess potential exposure, and evaluate strategies to mitigate the impact of the rapidly shifting tariff regimes.

Statistics:

  • 7-4 decision in favor of upholding the CIT's ruling
  • 2 sets of IEEPA tariffs at issue: Trafficking Tariffs and Reciprocal Tariffs
  • 40+ trading partners affected by the tariffs
  • $100 billion+ in tariffs imposed under IEEPA
  • 5% - 30% duty rates on various goods
  • October 14, 2025 - date by which the CAFC's judgment will take effect
  • September 3, 2025 - date on which the US government petitioned the Supreme Court to hear the appeal
  • 2026 (estimated) - date by which the Supreme Court may issue a decision on the case

Sources:

  • 1. V.O.S. Selections, Inc. v. Trump
  • 2. Learning Resources v. Trump
  • 3. International Emergency Economic Powers Act (IEEPA)
  • 4. Court of International Trade (CIT)
  • 5. United States Court of Appeals for the Federal Circuit (CAFC)
  • 6. Harmonized Tariff Schedule of the United States (HTSUS)
  • 7. Steptoe & Johnson, LLC