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| Judges hear arguments on Trump tariff case |
Today, a federal appeals court begins to hear a crucial challenge to tariffs launched under former President Trump. They are called ‘Liberation Day’ tariffs and aim to raise import taxes on many goods from China and other trading partners .
Those tariffs impose a 10 percent baseline duty on most imports and higher levies on countries judged to break trade rules . They took effect under the International Emergency Economic Powers Act (IEEPA), a 1977 law meant for real emergencies .
In May, the U.S. Court of International Trade found those tariffs illegal and blocked them permanently . The administration paused that injunction by appealing to the Federal Circuit. Now, eleven judges will weigh oral arguments today in Washington .
The government says the tariffs serve national security and protect U.S. workers. Opponents say IEEPA does not let a president impose broad duties, and only Congress may levy tariffs .
These duties hit steel, aluminum and many other goods. They shielded some factories and saved some jobs. But they pushed up costs for builders, auto makers and consumers .
Last year, the U.S. imported about $4.11 trillion in goods and services. The goods deficit reached $1.21 trillion, the highest ever recorded . Tariffs made that gap change but also raised prices on items like electronics and clothing.
Between January and June, the goods deficit fell 10.8 percent as imports dropped sharply. That helped lift GDP growth to 3.0 percent in Q2 2025, after a weak first quarter . But beneath that rebound, spending and hiring stayed soft .
If today’s court sides with challengers, the tariffs may vanish or shrink. That would cut costs for many businesses and families. It could also ease trade tensions with allies such as the EU and Japan .
If the court upholds the duties, the White House keeps a strong tool for trade talks. Trump had set an Aug. 1 deadline for partners to strike deals or face higher tariffs on steel, aluminum and other goods .
Countries still in talks include South Korea, India and Brazil. India faces a possible 25 percent levy over ties with Russia, which could cost its economy up to 0.4 percent of GDP growth .
In June, consumer goods imports plunged 12.4 percent as buyers rushed to avoid duties. That cut the goods deficit to $86 billion, the lowest since September 2023 .
Legal experts say this case will define how far presidents can use IEEPA for trade. It also tests the “major questions” doctrine, which demands clear congressional approval for big economic steps .
The Liberty Justice Center, joined by 12 states and small firms, argues the tariffs overstep executive power. They won the lower court and press their view here today .
The Justice Department defends the plan as vital to stop unfair trade and protect national health. It says long-term imbalances threaten U.S. security and industry.
Industry groups are split. Steel makers back the duties, saying they halted cheap imports. Car companies warn higher metal costs hit manufacturing and sales. Retailers say tariffs add billions to consumer bills.
The World Trade Organization has noted that U.S. duties spiked 50 percent under Trump’s second term. WTO members have filed complaints, but enforcement is slow.
Economists warn higher tariffs can slow down growth by hitting supply chains. They note trade wars with China and others shaved 0.5 percent off growth in early 2025 .
Still, some say tariffs gave negotiators real leverage. New deals with Europe and Japan eased some tensions, helping business confidence .
Investors and CEOs will watch today’s hearing closely. A ruling may come in weeks or stretch into 2026. If the tariffs fall, markets may rally on hopes of cheaper imports.
If they stay, foreign producers face higher costs and may seek new markets. That shift could help U.S. makers and raise revenue for the government. Tariff income topped $50 billion in 2024, financing various programs.
Critics say tariff revenue is a poor substitute for stable trade. They urge Congress to set clear rules on emergency powers and duties.
The outcome will also shape the 2026 elections. Trade remains a key voter issue in industrial states. Candidates may cite this ruling to back or drop tariffs.
Beyond politics, this case shows the tension between checks and balances. Courts guard against overreach, while presidents seek tools for fast action. Today’s decision could redraw that boundary.
As the hearing unfolds, the public can watch via live stream. A media roundtable by challengers follows at 2 p.m. EDT .
Whatever happens, the ruling will echo through boardrooms and factory floors. It will matter in Washington and in towns where trade jobs once thrived.
In the end, this fight is about more than numbers. It is about how the U.S. chooses to open or close its doors to the world. And it shows how law, economy and politics stay entwined.
Watch for updates after today’s arguments. The ruling could reshape U.S. trade power for years ahead.