Court of International Trade rules Trump’s unilateral tariffs unconstitutional

Properly, a unanimous ruling from a bipartisan panel:

The US Court of International Trade just issued a unanimous ruling in the case against Trump’s “liberation day” tariffs filed by Liberty Justice Center and myself on behalf of five US businesses harmed by the tariffs. The ruling also covers the case filed by twelve states led by Oregon; they, too, have prevailed on all counts. All of Trump’s tariffs adopted under the International Emergency Economic Powers Act of 1977  (IEEPA) are invalidated as beyond the scope of executive power, and their implementation blocked by a permanent injunction. In addition to striking down the “Liberation Day” tariffs challenged in our case (what the opinion refers to as the “Worldwide and Retaliatory Tariffs”), the  court also ruled against the fentanyl-related tariffs imposed on Canada, Mexico, and China (which were challenged in the Oregon case; the court calls them the “Trafficking Tariffs”).  See here for the court’s opinion.

It is worth noting that the panel include judges appointed by both Republican and Democratic presidents, including one (Judge Reif) appointed by Trump, one appointed by Reagan (Judge Restani), and one by Obama (Judge Katzmann).

Leaving aside the question of what Congress can do under the nondelegation doctrine — which I don’t think is material to the case — the heart of the court’s opinion is the statutory analysis Somin quotes:

Underlying the issues in this case is the notion that “the powers properly belonging to oneof the departments ought not to be directly and completely administered by either of the other departments.” Federalist No. 48 (James Madison). Because of the Constitution’s express allocation of the tariff power to Congress, see U.S. Const. art. I, § 8, cl. 1, we do not read IEEPA to delegate an unbounded tariff authority to the President. We instead read IEEPA’s provisions to impose meaningful limits on any such authority it confers. Two are relevant here. First, § 1702’s delegation of a power to “regulate . . . importation,” read in light of its legislative history and Congress’s enactment of more narrow, non-emergency legislation, at the very least does not authorize the President to impose unbounded tariffs. The Worldwide and Retaliatory Tariffs lack any identifiable limits and thus fall outside the scope of § 1702.

Second, IEEPA’s limited authorities may be exercised only to “deal with an unusual and extraordinary threat with respect to which a national emergency has been declared . . . and may not be exercised for any other purpose.” 50 U.S.C. § 1701(b) (emphasis added). As the Trafficking Tariffs do not meet that condition, they fall outside the scope of § 1701.

If the “major questions” doctrine means anything this is an easy case, but I also don’t think it needs to mean anything (which is a good thing!) This is ultimately just a straightforward ultra vires case — the statute simply does not authorize extremely high across-the-board tariffs, changed at random intervals, in better-than-usual economic conditions. Emergency powers are being exercised in the absence of an emergency, and this exceeds the power delegated by Congress.