Judiciary Examines Limits on Presidential Tariff Powers

The U.S. Court of Appeals for the Federal Circuit is scrutinizing former President Trump's use of emergency powers to impose tariffs, questioning the legality under the IEEPA. This examination follows lawsuits from states and businesses challenging Trump's broad use of tariff authority, crucial in his trade policy.

In a heated session, appeals court judges questioned the breadth of former President Donald Trump's tariff powers under the International Emergency Economic Powers Act (IEEPA). These tariffs, critical to Trump's foreign policy, face legal challenges from states and businesses citing potential overreach.

The crux of the argument revolves around whether IEEPA extends to include tariff imposition, with government attorney Brett Shumate asserting that it provides the president 'extraordinary' authority during crises. Opponents, however, maintain that such powers lie with Congress.

As the courts deliberate, the issue reflects broader financial implications, including increased federal revenue from tariffs and potential inflationary effects on consumers and corporates amid ongoing trade negotiations.

(With inputs from agencies.)