President Donald Trump, left, speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington, D.C., as Commerce Secretary Howard Lutnick listens. (AP Photo/Mark Schiefelbein)
However, whether emergency tariffs are the appropriate vehicle to accomplish this is an open question and one central to Thursday's oral arguments before the appeals court.
Plaintiffs in V.O.S. Selections Inc. v. Trump will argue on Thursday that the looming tariffs have already introduced confusion and volatility into markets, threatening the bottom lines of small U.S. businesses and making it extremely difficult for owners to operate under shifting guidance that seems to change on a whim.
Small businesses in the U.S. have been hit with months of "complete uncertainty," Jeffrey Schwab, senior counsel and director of litigation of the Liberty Justice Center, one of the groups representing small businesses in court, said in an interview Wednesday.
"That's largely due to the fact that the president asserts the power to impose tariffs on any country he wants, for any reason — and at any rate he wants, at any time he wants," Schwab said.
"So there's no certainty on what the rate is going to be from one week to the next, and that's very difficult to do business with, when things are constantly changing."
Judges on a three-judge panel for the U.S. Court of International Trade voted unanimously to block Trump's tariffs from taking force earlier this year, ruling that, as commander in chief, Trump does not have "unbounded authority" to impose tariffs under the emergency law.
That ruling was later paused by the appeals court in Washington, D.C., which agreed to consider the administration's request for relief.
Ahead of Thursday's oral arguments, U.S. Attorney General Pam Bondi vowed they would continue to defend the president's trade agenda in court.
"This morning, [Justice Department] attorneys are going to court to defend President Trump’s tariffs — which are transforming the global economy, protecting our national security, and addressing the consequences of our exploding trade deficit," she said. "We will continue to defend the president."
TRUMP TARIFF PLAN FACES UNCERTAIN FUTURE AS COURT BATTLES INTENSIFY
Traders work on the floor of the New York Stock Exchange on March 28, 2025, in New York City. (Spencer Platt/Getty Images)
Some Trump supporters have argued the tariffs are merely a negotiating tactic to get foreign governments to the table — though the administration has repeatedly vowed to use "all tools" at their disposal to advance
They argued in a court filing that the IEEPA is the law that Congress passed in 1977 to allow the president to respond to "unusual and extraordinary threats" and in cases where a national emergency has already been declared.
However, plaintiffs argue that Trump’s use of IEEPA to address the trade deficit is unlawful, pointing out that, by the administration’s own admission, the deficit has persisted for nearly 50 years, undermining the claim of an "unusual and extraordinary" emergency.
The Court of Appeals for the Federal Circuit will likely move on the case quickly, with a decision expected in August. No matter the outcome, both sides have vowed to take the fight to the Supreme Court, if necessary.
The U.S. Supreme Court is shown at dusk on June 28, 2023 in Washington, D.C. (Drew Angerer/Getty Images)
In the interim, economists noted there could be real harm the longer the court process takes.
CLICK HERE TO GET THE FOX NEWS APP
Schwab, the lawyer helping represent plaintiffs in court Thursday, said small business owners could see "potentially irreparable harm" as a result of court inaction. Already, he said Wednesday, his clients are reporting real harm.
"Some of the harm has already taken place," Schwab said in an earlier interview. "And the longer it goes on, the worse it is."
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.
https://www.foxnews.com/politics/trumps-liberation-day-tariffs-could-hit-snag-court-today-heres-what-know