On June 10, 2025, the U.S. Court of Appeals for the Federal Circuit (the “Federal Circuit”) ruled that the President’s “Liberation Day” and other tariffs will remain in effect until it rules on an appeal of a decision blocking the tariffs by the Court of International Trade. In V.O.S. Selections. Inc. v. Trump, the Court of International Trade (“CIT”) ruled that the tariffs were not supported by the International Emergency Economic Powers Act (“IEEPA”). 

The Constitution vests the power to impose taxes such as tariffs in Congress, not the President. Certain statutes enacted by Congress, however, authorize the President to impose tariffs in particular circumstances and with particular limitations. The President has justified the Liberation Day tariffs and other tariffs under IEEPA.

IEEPA does not mention tariffs and has never been used as a basis for tariffs. It empowers the President to “deal with any unusual and extraordinary threat, which has its source in whole or in substantial part outside the United States… if the President declares a national emergency with respect to such threat.” 50 U.S.C. § 1701. The administration claims the Liberation Day tariffs are necessary to address “the large and persistent trade deficit that is driven by the absence of reciprocity in our trade relationships and other harmful policies like currency manipulation and exorbitant value-added taxes (VAT) perpetuated by other countries.” The administration claims the February tariffs against China (and others, including Canada) are necessary to address “the extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl.” 

The CIT ruled on May 28 that IEEPA did not support either set of tariffs—the “Liberation Day” trade-deficit tariffs or the February aliens/drugs tariffs. Oversimplifying, the CIT ruled that the trade deficits are not an emergency as required to invoke the President’s powers under IEEPA (the court held that the trade deficits “do not necessitate the use of emergency powers”) and the drugs/aliens tariffs do not address the drugs/aliens emergency.

The CIT entered a nationwide permanent injunction barring the government from collecting any of the IEEPA tariffs from any importers. That injunction was stayed by the Federal Circuit and the stay was extended on June 10. The Federal Circuit also ruled on June 10 that the case will be decided en banc by all active judges of the circuit, rather than by a three-judge panel, and set oral argument for July 31 at 10 A.M.

In a separate case, the day after the CIT decision, the federal court in Washington D.C. (the U.S. District Court for the District of Columbia or “DDC”) ruled that IEEPA does not authorize the President to impose tariffs at all. That case is Learning Resources, Inc. v. Trump. The court enjoined the government from collecting taxes only from the named plaintiffs in that case. The DDC stayed that ruling pending appeal. 

Both cases will almost certainly end up before the Supreme Court. These cases are two of at least ten lawsuits challenging the tariffs. Long story short, IEEPA tariffs remain in place at least until the Federal Circuit decides the appeal sometime after July 31.