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.
They are represented by the Liberty Justice Center, a libertarian public interest law firm with financial backing from conservative megadonors Robert Mercer and Richard Uihlein—ironically both major supporters of Trump’s presidential campaigns.
At stake is a central pillar of Trump’s economic policy. The reciprocal tariff programme imposes duties of up to 30% on a range of imported goods and has already provoked retaliatory measures from the European Union, China, and other major trading partners.
If the court sides with the plaintiffs, it could force a dramatic rollback of the policy, delivering a major blow to Trump’s efforts to reframe America’s global trade relationships. Conversely, a win for Trump would enshrine broad presidential powers over trade, significantly weakening the role of Congress in shaping tariff policy.
The appeals court’s ruling is expected in the coming days, but with the tariffs due to take effect at midnight, today’s hearing is widely seen as a last-minute battleground in a politically explosive case with wide-ranging implications for U.S. trade, law, and executive power.