An Obscure New York Court Might Decide the Fate of Trump’s Tariffs

The Court of International Trade will consider the legality of the ‘Liberation Day’ levies.

This week, the Court of International Trade will make a ruling on the Legality of Trump’s ‘Liberation Day’ Tariffs.

A three-judge panel at the Court of International Trade will hear arguments Tuesday on whether to halt the levies, which have unleashed a trade war with the world and threaten to upend the global economy.

The court will step into the limelight this week in a lawsuit brought by New York-based wine importer V.O.S. Selections and four other small businesses who say President Trump doesn’t have the authority to impose the tariffs. Other challenges have been filed in the court and in federal district courts around the country, but the V.O.S. case is front and center so far.

Trump unveiled his “Liberation Day” tariffs in early April, placing 10% levies on every nation. He imposed even higher rates on many countries he deemed “bad actors,” but later announced a 90-day pause on those duties. China wasn’t included in the moratorium; instead Trump ratcheted up its tariffs to 145%. The president invoked the International Emergency Economic Powers Act, a 1970s-era law known as IEEPA, in imposing the sweeping tariffs, saying trade deficits had hobbled the U.S. economy and created a national emergency.

The Court of International Trade is no different than any other district court in the U.S., although it has a few quirks. Congress created it in 1980 as a successor to the U.S. Customs Court, which operated for decades in Manhattan when New York City was the busiest harbor for imports in the country.

Typically, a single trade judge presides over a case, but a three-judge panel will hear cases that raise constitutional questions or have significant implications. 

The Liberty Justice Center, a libertarian public-interest litigation firm, is representing V.O.S. Its lawyers say IEEPA doesn’t give the president the power to impose tariffs, which is a responsibility for Congress. “IEEPA does not even mention tariffs,” they wrote in a court brief. Also no emergency exists, they say, as U.S. trade deficits have persisted for decades without causing economic harm.

If the panel finds the emergency economic powers law does allow the president to impose tariffs, that conclusion would force the court to face far-reaching constitutional issues that could further embolden Trump if he wins. 

The plaintiffs argue that Congress can’t just delegate its legislative authority to the president. “If there are any constitutional limits to delegation at all, they apply here, in a case where the executive claims virtually limitless authority to impose massive tax increases and start a worldwide trade war,” they said in their lawsuit.

The Justice Department argues the president has historically conducted foreign affairs and ensured national security through the regulation of trade. In approving IEEPA, Congress validly delegated authority to the president to regulate imports during emergencies, the department says. 

“When it comes to foreign affairs, broad grants by Congress of discretion to the Executive are common,” the department wrote in a court brief. The government also argued that Trump’s declaration of an emergency was a political question that can’t be second-guessed by the judiciary.

While the trade court has jurisdiction over tariffs, some plaintiffs have taken their challenges to district courts instead, arguing they aren’t bound to file in the specialized New York court because Trump improperly relied upon a law that isn’t about tariffs at all. If district judges agree, that would be a considerable blow to the administration.

The government has asked district courts hearing the tariff challenges to transfer them to the trade court, arguing that body has sole jurisdiction to ensure that decisions on these matters are carried out uniformly.

The Judges

  • Timothy Reif, a Trump-nominated judge who is a Democrat with a reputation as a protectionist. He previously served as general counsel for the office of the U.S. trade representative during President Barack Obama’s administration.
  • Judge Gary Katzmann, a former federal prosecutor and state appeals court judge in Massachusetts whom Obama nominated to the trade court and is known for taking a scholarly approach to scrutinizing cases.
  • Judge Jane Restani, was appointed to the court by President Ronald Reagan in 1983 and previously served as the court’s chief judge.

The Trump administration wants the cases transferred to the trade court. That’s a sign the administration believes it can win the case there.

I am not so sure about that, or the likelihood district court cases and the Court of International Trade come to opposing conclusions, or what happens on appeal.

The Plaintiffs Case

  • Congress cannot delegate its constitutional authority to the president.
  • The IEEPA, on which Trump bases the tariffs, does not even mention tariffs
  • No emergency exists. Trade deficits have persisted for decades without causing economic harm.

That is (rather should be) a rock solid case.

However, I suspect the Administration has one vote in the bag (Timothy Reif, a Trump-nominated protectionist). If so, the plaintiffs need the other two.

Regardless, decisions of the United States Court of International Trade (CIT) can be appealed. Appeals are heard by the United States Court of Appeals for the Federal Circuit, and further appeals can be made to the Supreme Court of the United States.

My only prediction is this is headed for the Supreme Court, with an uncertain outcome, despite the plaintiffs having a very strong case.

What Should Happen

Trump deserves to lose on the merits of the case, but I will not place odd on that outcome right now.

No matter who wins, expect an appeal, then an appeal to the Supreme Court. That means there is plenty of time for very damaging reactions to Trump’s tariffs.

Movies, a National Security Issue

Please note Movies Are Now a National Security Threat, 100 Percent Tariffs Announced

Just when you thought national security threats could not get any stupider … Trump says Hollywood ‘dying’; orders 100% tariff on non-US movies to save it.

May 9, 2025: Trump Threatens 100 Percent Tariffs on Mattel and Barbie Dolls

Obviously, Barbie is a matter of national security, like movies and everything else.

May 5, 2025: Small Businesses Will Get Hit the Hardest by Trump’s Tariffs

Small businesses were already struggling. Tariffs will end the viability of many.

By the time this tariff case is decided, Trump will have destroyed many profitable small businesses in the name of “national security”.

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Bayleaf
Bayleaf
10 months ago

This is the only way you, Xi and the leftist retards would save face. If tariffs are stopped by bunch of rogue judges in liberal NY.

Peace
Peace
10 months ago

Time to save the face.

Albert
Albert
10 months ago

The Trump tariffs are obviously illegal. But why would that matter given how far things have already gone? We are no longer a country following the rule of law.

Patrick
Patrick
10 months ago

The harshest minimum sentencing mandates in federal courts are for crimes against judges. Now many can see why.

Webej
Webej
10 months ago

It seems that across the “democratic” West the past decade, governments need to rely on “emergencies” more and more since they lack popular and institutional support

Real democrat
Real democrat
10 months ago
Reply to  Webej

There is mass public support for Trump.

ron
ron
10 months ago
Reply to  Webej

Uhhhh……Trump just won an election where one of overall arching issues was his intention to bring in what can be described as protectionist policies. The other main issue was his plan to massively reorganize and refocus those institutions that you refer to. Let me repeat …..he won the election handily. Both the popular vote and the electoral college.

Webej
Webej
10 months ago
Reply to  ron

Why is he ruling by decrees predicated on national security emergencies?

Why not just change the laws and the way the institutions work?

Flingel Bunt
Flingel Bunt
10 months ago
Reply to  Webej

Um, because Congress is broken.

Flingel Bunt
Flingel Bunt
10 months ago
Reply to  ron

I fear it is a fickle majority. We’ll know come the midterms. The average IQ of voters is not reassuring.

SocalJim
SocalJim
10 months ago

Many of you are on the wrong side of this. On Saturday, the Trump Team brokers a ceasefire between India and Pakistan which are both nuclear powers. Today, the Trump Team agreed to terms underlying a Chinese USA trade agreement. The world is in a better place than it has been in a long time. I hope you are long.

Frosty
Frosty
10 months ago

Trump does not have much of a track record for respecting the rule of law, having a moral compass or election results.

What makes anyone think he would care about this ruling?

Trump is above the law and Fox News (MSM) Newscorp, will back any lie he spouts.

.

Avery2
Avery2
10 months ago
Reply to  Frosty

There’s the problem. How often do you watch Fox News? Were you expecting Huntley & Brinkley?

Frosty
Frosty
10 months ago
Reply to  Avery2

Actually sometimes Fox frontons the story and trump falls in line! Actors and their makeup!

Fools follow! ;-)))

Remember back in 2016 when Fox declared that they would pick the next president? I do and they did lead the lemmings to the slaughter.

As depressing as this is, at least I’m making money!

Last edited 10 months ago by Frosty
Patrick
Patrick
10 months ago
Reply to  Frosty

Bill Clinton with Monica Lewinsky under his desk was your guy, right?

Frosty
Frosty
10 months ago
Reply to  Patrick

Trump mentioned 54 times in the Epstein report…

But Monica was not all that cute after a few years got on her – and it all came out. Well, except for the cum stains…

Flingel Bunt
Flingel Bunt
10 months ago
Reply to  Frosty

Perhaps you can list those 54 times here to save me the trouble.

Flingel Bunt
Flingel Bunt
10 months ago
Reply to  Patrick

I still remember trying to explain a blow job to my young daughter. Luckily, ‘cigar pussy’ had not reached the news.
Clinton was always gross–going back to when he was kicked out of England for alleged rape.

Flingel Bunt
Flingel Bunt
10 months ago
Reply to  Frosty

A+ for mind control, since all of your ‘points’ also apply to his predecessors (both Biden and Obama).

If you get past the mass media and their target marketing, you see both sides are self-serving, and the people are paying the price.

DanW
DanW
10 months ago

Any and every “Emergency Action” should expire after 30 days unless passed into law by Congress.

EADOman
EADOman
10 months ago

Trump’s trade deals involve concessions on 90% of his original demands, then he claims victory. The Art of the Deal and 5D chess, lol.

Patrick
Patrick
10 months ago
Reply to  EADOman

Is a 10% win better than where we started? This is not a trick question. It does not require advanced mathematics.

Flingel Bunt
Flingel Bunt
10 months ago

Of course, the counter argument is that trade deficits have caused immense harm to the US, essentially transferring wealth to other countries, and diminishing the ability of the US to provide for its needs in time of war. etc etc.

The argument, while not strong, is about as weak as that of the plaintiffs.

Doug78
Doug78
10 months ago
Reply to  Flingel Bunt

Should courts be deciding whether the trade deficit is a danger or not? Should they decide also where the Dollar should be? I don’t think so.

EADOman
EADOman
10 months ago
Reply to  Doug78

And this should be solely at the discretion of the executive branch? I don’t think so. There are 3 branches of government for a reason.

Flingel Bunt
Flingel Bunt
10 months ago
Reply to  EADOman

One branch is effectively neutered by gross incompetence and silly games.
The Judiciary is too politically biased for useful ‘government.’
Which leaves???? A eunuch in the case of Biden. And a carnival barker in the case of Trump.

Doug78
Doug78
10 months ago
Reply to  EADOman

The law passed by Congress says he has the power and with the deficit heading above a trillion Dollars most people would call that an emergency.

CJW
CJW
10 months ago
Reply to  Doug78

if it is an emergency it is an emergency created by the US government.

Patrick
Patrick
10 months ago
Reply to  EADOman

Errr … psssst. The constitution.

Flingel Bunt
Flingel Bunt
10 months ago
Reply to  Doug78

That’s the plaintiff argument–my point. Both sides are weak. Again. it’ll go the USSC. Does the US want a president, or a figurehead?

Doug78
Doug78
10 months ago
Reply to  Flingel Bunt

We already had a figurehead and don’t want another.

Flingel Bunt
Flingel Bunt
10 months ago
Reply to  Doug78

Most readers here want a figurehead, if a Republican. A Democrat is SO MUCH BETTER.

Cliff C
Cliff C
10 months ago
Reply to  Flingel Bunt

And the trade deficits were caused by the “exorbitant privilege”.

Christoball
Christoball
10 months ago

The problem is that US corporations invest in stock buybacks, and off-shore factories rather than factories, and labor here in the Land of Apple Pie.

MPO45v2
MPO45v2
10 months ago
Reply to  Christoball

It’s only a problem if you’re not a shareholder. Perhaps you should focus more on becoming a shareholder (i.e. owner) of companies than a worker bee?

It’s better to be the master than the slave.

Patrick
Patrick
10 months ago
Reply to  MPO45v2

After Marxism’s abysmal and superficial reading of Hegel’s Master / Slave dialectic, some post modern theorists turned to the Marquis de Sade as a stronger example of liberation of the slave from the master. But it doesn’t flip the power relationship in the usual way. Power bottoms will save the world. You should find this interesting.

Lefteris
Lefteris
10 months ago

I think the trade war should focus not on tariffs, but on Standards. Dangerous formaldehyde emitting furniture, dangerous electric fuses, even bath towels bleaching their toxic colors in washing machines, drywalls destroying buildings, coffee machines poisoning users after a few months of use (internal tube corrosion), etc. etc. – if you force China to adopt the high standards of the West for products they export to the US, prices will come a lot closer to Western prices.
After all, of the major purposes of Economics is to improve living standards, right?
I don’t remember life being worse before China’s cheap products. I do remember many household products lasting longer.

Peace
Peace
10 months ago
Reply to  Lefteris

Fashion come and go. People don’t use for a long time.
eg. People change their mobile phones whenever new version arrives.
Similar to clothes, cars, etc.
Old people use theirs for a long time but majority change theirs regularly.

J_Schneider
J_Schneider
10 months ago

This means that all nations should wait until there is binding court decission. Why would anybody negotiate with some one who probably doesn’t have the authority? Or will all countries retroactively rewoke their deals if this Administration loses the case?

Flingel Bunt
Flingel Bunt
10 months ago
Reply to  J_Schneider

Trump has as much authority as Biden did to open the borders and allow illegal immigrants to pour across the border.

CJW
CJW
10 months ago
Reply to  Flingel Bunt

So?

Frosty
Frosty
10 months ago
Reply to  J_Schneider

Even if he has the authority, he violates his own deals.

Trump is a liar

.

I’m back robbyrob
I’m back robbyrob
10 months ago

Germany’s Car Labor Costs Make America Look Like A Bargain FactoryThe study also found that cars can cost up to $7,800 more to build in Germany than in China

https://www.carscoops.com/2025/05/germanys-car-production-labor-costs-are-double-the-usas-and-5-times-chinas/

Flingel Bunt
Flingel Bunt
10 months ago

Eventually, perhaps soon, all German cars will be made in China.

Avery2
Avery2
10 months ago
Reply to  Flingel Bunt

They can photoshop the pictures of their Mercedes convertibles from 85 years ago and switch out ‘you know who’s’ picture with Mao’s.

Last edited 10 months ago by Avery2
Avery2
Avery2
10 months ago

I love the German car commercials with the pretentious female Brit voiceovers – “yeah baby!”

Patrick
Patrick
10 months ago
Reply to  Avery2

My Mercedes transmission shit the bucket at 61,000 miles. Right after the power train warranty expired. No thanks, nicht mehr.

CJW
CJW
10 months ago

Yes but better quality on average.

njbr
njbr
10 months ago

“China trade deal” is most likely a deal on slowing fentanyl precursors from China in return for 80% tariffs

Doug78
Doug78
10 months ago

Also no emergency exists, they say, as U.S. trade deficits have persisted for decades without causing economic harm.”

If this is one of the main arguments against the tariffs by The Liberty Justice Center which is the plaintiff then I don’t see how they can win. It probably will be overturned

Flingel Bunt
Flingel Bunt
10 months ago
Reply to  Doug78

Sadly, most readers do not understand the harm in destroying a nation’s manufacturing infrastructure so people can have cheap junk from Asia.

EADOman
EADOman
10 months ago
Reply to  Flingel Bunt

Nobody is forcing you to buy cheap junk from Asia.

Flingel Bunt
Flingel Bunt
10 months ago
Reply to  EADOman

The American mindset is really the issue. 50+% of its people are no longer patriotic.

Last edited 10 months ago by Flingel Bunt
Flingel Bunt
Flingel Bunt
10 months ago
Reply to  Flingel Bunt

What percent of Chinese are ‘patriotic?’

If both China and the US have the same tariff, which country wins the trade war, and why?

CJW
CJW
10 months ago
Reply to  Flingel Bunt

but isn’t this problem caused primarily by American companies offshoring their manufacturing? So whose fault is that?

Jojo
Jojo
10 months ago
Reply to  CJW

Non-patriots, obviously! [lol]

I’m back robbyrob
I’m back robbyrob
10 months ago

White House touts ‘China trade deal,’ but offers no detailsDetails on Monday 0512

Bill Meyer
Bill Meyer
10 months ago

“The plaintiffs argue that Congress can’t just delegate its legislative authority to the president.” <snip> Would REALLY like to see push back on this to our lazy Congress where most all regulatory power is ceded to the agencies. Wouldn’t it be great to have Congress Critters VOTE on regulations? Bet there would be far fewer.

Avery2
Avery2
10 months ago
Reply to  Bill Meyer

That is a great point, initially made famous by FDR with the New Deal and NRA.

Last edited 10 months ago by Avery2
Matt
Matt
10 months ago

And now we have a deal with China. But keep it up. Orange man bad.

Victoria "the Hutt" Nuland
Victoria “the Hutt” Nuland
10 months ago
Reply to  Matt

China said no deal has been made. It sounds like another stock market pump by Trumpybear.

Avery2
Avery2
10 months ago

Deal or No Deal. Get the Duchess Of Sussex to mediate by opening up the next suitcase.

Tony Frank
Tony Frank
10 months ago

One can only hope………………

Dave Smith
Dave Smith
10 months ago

I think Trump diluted his national emergency argument by including movies and toys and I do not believe the founders ever intended for one individual to have the broad powers Trump is wielding over trade tariffs. I hope he loses this one decisively for the good of our nation.

Dave Smith
Dave Smith
10 months ago
Reply to  Mike Shedlock

Trump Threatens 100 Percent Tariffs on Mattel and Barbie DollsMay 9, 2025

I overlooked the threatens but I thought the 145% on China included toys. My bad, it’s hard to keep up with the nonsense.

Flingel Bunt
Flingel Bunt
10 months ago
Reply to  Dave Smith

Never fear. Barbie can expand with inflatable dolls for gender-neutered kids.

Christoball
Christoball
10 months ago
Reply to  Mike Shedlock

Action figure toys should be exempt from tariffs. Action figures are America’s heroes, and will save the nation.

Avery2
Avery2
10 months ago
Reply to  Dave Smith

He’s no Dumbya, that’s for sure.

Patrick
Patrick
10 months ago
Reply to  Dave Smith

Jefferson bought Louisiana without asking anyone.

peelo
peelo
10 months ago

I like the idea, because this court has some business credibility, and is a bit out of the usual political spotlight. Hopefully, whatever the ruling, there will be minimal political light and heat, if that is possible.

Avery2
Avery2
10 months ago
Reply to  peelo

Amy Comey Barrett and Roberts will eventually decide the whole thing. Trump has ‘no standing’ with the Brooklyn Traffic / Dog Catcher Courts.

CJW
CJW
10 months ago
Reply to  Avery2

that makes me nervous. Appointed intellectuals with no guard rails deciding the fate of people they don’t care about.

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