Donald Trump’s sweeping tariff regime is set to face a crucial legal test on Thursday morning, just hours before a major wave of new import duties is scheduled to take effect. The case could determine whether the former president’s aggressive trade policy, justified under emergency powers, can legally stand.
In an extraordinary full-bench hearing, all 11 judges of the U.S. Court of Appeals for the Federal Circuit in Washington D.C. will review whether Trump overstepped his authority by invoking the 1977 International Emergency Economic Powers Act (IEEPA) to justify broad “reciprocal” tariffs on dozens of countries.
The case stems from a May ruling by a three-judge panel of the Court of International Trade, which found Trump’s invocation of emergency powers under the IEEPA unjustified and blocked the tariffs. However, that ruling has been stayed pending Thursday’s appeal hearing, meaning the tariffs can still go into force if upheld.
Trump, posting on his Truth Social platform, called it “America’s big case,” claiming: “If our country was not able to protect itself by using TARIFFS AGAINST TARIFFS, WE WOULD BE ‘DEAD,’ WITH NO CHANCE OF SURVIVAL OR SUCCESS.”
The lawsuit has been brought by a coalition of five small U.S. businesses and 12 Democrat-led states. Their argument centres on the original intent of the IEEPA, which allows presidents to respond to “unusual and extraordinary threats” during national emergencies. The plaintiffs contend that Trump’s use of the statute to justify retaliatory tariffs—based on the trading policies of other nations—does not meet the legal threshold.
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