Tariff case pits Cato Institute against Trump over ‘unlimited’ executive power under emergency law

Cato Institute challenges Trump's emergency tariffs in new amicus brief, arguing the administration overstepped authority under IEEPA and undermined separation of powers.

Cato Institute challenges Trump's emergency tariffs in new amicus brief, arguing the administration overstepped authority under IEEPA and undermined separation of powers (BRENDAN SMIALOWSKI/AFP via Getty Images)

"Tariff rates went up to 145% on some products from China," he said. "And the president’s lawyers couldn’t offer a limiting principle. That tells you the administration believes there’s no real cap, and that’s a problem."

Cato’s brief urges the appeals court to uphold a lower court ruling that found the tariffs exceeded the president’s statutory authority. The U.S. Court of International Trade ruled earlier this year that the president’s use of IEEPA in this case was not legally authorized. The court said the law does not permit the use of tariffs as a general tool to fight drug trafficking or trade imbalances.

Skorup said in court the administration was unable to define a clear limit on its authority under IEEPA. 

"They couldn’t articulate a cap," he said. "There’s nothing in the law that mentions duties or tariffs. That’s a job for Congress."

The administration has defended its actions, arguing that IEEPA provides the necessary tools for the president to act swiftly in times of national emergency. Trump officials maintain that both the fentanyl crisis and America’s trade vulnerabilities qualify.

TARIFF FIGHT ESCALATES AS TRUMP APPEALS SECOND COURT LOSS

President Donald Trump holds a "Foreign Trade Barriers" document as he delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2, 2025. (REUTERS/Carlos Barria/File Photo)

Skorup said there are several small businesses that rely on global imports and it becomes a "matter of survival" when tariff rates change unexpectedly.

"V.O.S. Selections imports wine and spirits and when the tariff rates go up unexpectedly, they can’t get products to their distributors as planned," he said. "And that’s true for others too, like pipe importers and specialized manufacturers. These companies don’t have the flexibility to absorb those costs or adjust overnight."

If the appeals court sides with the administration, it could mark a major expansion of presidential power over trade policy. Skorup warned that such a ruling would allow future presidents to take similar actions with little oversight.

"It would bless Congress’ ability to hand over immense economic power to the president," he said. "That would blur the separation of powers that the Constitution is supposed to protect."

A decision from the appeals court is expected later this year.

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The White House did not immediately respond to Fox News Digital's request for comment.

Jasmine is a writer at Fox News Digital and a military spouse. Stories can be sent to jasmine.baehr@fox.com or to @JasmineSBaehr via X

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