The Cato Institute and the New Civil Liberties Alliance (NCLA) have called on the Federal Circuit to strike down President Donald Trump‘s tariffs, arguing they rely on a statute that does not grant any authority to impose such tariffs.
What Happened: According to briefs filed by the Cato Institute and the NCLA, the International Emergency Economic Powers Act (IEEPA) does not give the president authority to impose tariffs, Reason reported. They argue that the Constitution grants that power exclusively to Congress.
The CIT's decision in VOS Selections v. Trump concluded that neither set of tariffs—intended to curb drug trafficking and reduce trade deficits—was authorized under the IEEPA. The Trump administration is now challenging the ruling through an appeal.
In two briefs filed on Tuesday, the Cato Institute and NCLA contend that the CIT should have taken a broader stance by declaring that the IEEPA does not authorize tariffs “at all.”
The CIT ruling addressed two categories of tariffs: duties on imports from China, Mexico, and Canada, and the “Liberation Day” tariffs affecting goods from nearly all nations. In both instances, Trump cited an “unusual and extraordinary threat” and declared a “national emergency” under the IEEA to justify the measures.
Both Cato and the NCLA maintain that the statute does not grant the president “an unbounded tariff authority.” In their Federal Circuit briefs, they argue that the IEAA provides no tariff authority to the president at all. “The Constitution vests the power to impose tariffs solely in Congress,” the Cato brief asserts.
They argue that the IEEPA was meant to “limit,” not expand, executive power, citing legal doctrines that limit presidential authority without clear congressional approval.
Why It Matters: This development comes after a federal appeals court allowed Trump’s tariffs to remain in effect while reviewing the lower court decisions that blocked the duties on constitutional grounds. The U.S. Court of Appeals for the Federal Circuit granted a temporary stay, preserving Trump’s “Liberation Day” tariffs on most trading partners and separate duties on Canada, China, and Mexico.
Meanwhile, Treasury Secretary Scott Bessent has cautioned that countries failing to negotiate a deal with the U.S. will face a return to higher tariff rates from August 1. The 90-day pause on the “reciprocal” tariffs, initially declared on April 2 and paused for 90 days a week later, is scheduled to conclude on July 9. Bessent clarified that the new effective date does not represent a new deadline or an extension of the original timeline.
On the other hand, billionaire investor Ray Dalio warned that Trump’s latest round of tariffs could deepen “stagflation” and may never deliver on promises to revive U.S. factory floors.
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