Trump delivers remarks on tariffs in the Rose Garden at the White House on April 2, 2025. (Reuters/Carlos Barria/File Photo)
Trump’s use of the emergency law to invoke widespread tariffs was struck down unanimously last week by the three-judge CIT panel, which said the statute does not give Trump "unbounded" power to implement tariffs. However, the decision was almost immediately stayed by the U.S. Court of Appeals, allowing Trump’s tariffs to continue.
But in a lesser-discussed ruling on the very same day, U.S. District Judge Rudolph Contreras, an Obama appointee, determined that Trump’s tariffs were unlawful under IEEPA.
Since the case before him had more limited reach than the case heard by the CIT – plaintiffs in the suit focused on harm to two small businesses, versus harm from the broader tariff plan – it went almost unnoticed in news headlines.
But that changed on Monday.
TRUMP DENOUNCES COURT’S 'POLITICAL' TARIFF DECISION, CALLS ON SUPREME COURT TO ACT QUICKLY
President Donald Trump speaks to reporters after David Perdue was sworn in as U.S. ambassador to China. (AP Photo/Mark Schiefelbein)
"I think the thing to keep in mind there is that Trump and Vance have this view that tariffs are beautiful because they will restore America's Rust Belt jobs and that they'll collect money while they're doing it, which will contribute to fiscal growth," said Cline, the former deputy managing director and chief economist of the Institute of International Finance.
"Those are both fantasies."
What comes next in the case remains to be seen. The White House said it will take its tariff fight to the Supreme Court if necessary. Counsel for the plaintiffs echoed that view in an interview with Fox News.
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But it's unclear if the Supreme Court would choose to take up the case, which comes at a time when Trump's relationship with the judiciary has come under increasing strain.
In the 20 weeks since the start of his second White House term, lawyers for the Trump administration have filed 18 emergency appeals to the high court, indicating both the pace and breadth of the tense court battles.
Breanne Deppisch is a national politics reporter for Fox News Digital covering the Trump administration, with a focus on the Justice Department, FBI, and other national news.
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