A federal appeals court just steps from the White House could derail US President Donald Trump’s “reciprocal” tariffs before they take effect on Friday, a move that could weaken Washington’s leverage in trade talks with China and other key partners.
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The US Court of Appeals for the Federal Circuit will hear arguments on Thursday in Washington on whether the tariffs can survive legal scrutiny.
The lawsuit, V.O.S. Selections v. Trump, challenges Trump’s claim he can unilaterally impose tariffs under the International Emergency Economic Powers Act, arguing he overstepped his authority by bypassing Congress.
IEEPA gives the president power to regulate economic activity during a national emergency. No president before Trump has used the statute to justify tariffs.
The case consolidates two lawsuits: one filed by 12 states led by Oregon, the other by five small American businesses. The lead plaintiff, V.O.S. Selections, is a New York-based wine importer. In addition to Oregon, states named as plaintiffs include Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York and Vermont.
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The legal challenge also targets Trump’s February decision to impose 20 per cent to 25 per cent fentanyl-related tariffs on imports from China, Mexico and Canada.