The three judges of the Court of International Trade in the United States will hear arguments in the Trump tariff case on Tuesday, May 13, to decide whether to suspend the tariffs imposed by the Trump administration in recent months.
Established in 1980, the federal court has nationwide jurisdiction over tariffs and trade disputes, with its predecessor, the U.S. Customs Court, operating in Manhattan, New York for decades. The court currently consists of 14 judges appointed by six different presidents, and most cases involve challenges by importers against the legality of trade relief measures taken by the government against foreign companies, often when importers dispute the accuracy of tariff assessments.
Typically, cases are heard by a single trade judge, but cases involving constitutional issues or of significant impact are adjudicated by a three-judge panel.
The case at hand was brought by V.O.S. Selections, a wine importer based in New York, and four other small businesses, alleging that President Trump does not have the authority to implement these tariffs. While other lawsuits have been filed in the court and federal courts across the country, the V.O.S. case currently holds the spotlight.
In early April, the Trump administration announced 10% tariffs on all countries, with higher rates imposed on countries considered “bad actors,” and later announced a 90-day suspension of these tariffs, except for China, with tariffs on Chinese goods increased to 145%.
President Trump invoked the 1970s International Emergency Economic Powers Act (IEEPA) to implement extensive tariff measures, citing “unfair trade” leading to deficits that severely weakened the U.S. economy, constituting a national emergency.
The Liberty Justice Center, a progressive public interest litigation organization, is representing V.O.S. in the lawsuit. The lawyers argued in court documents that the IEEPA does not grant the president the power to levy tariffs, which is the responsibility of Congress.
They wrote, “IEEPA does not even mention tariffs.” Furthermore, they argued that there is no emergency as the U.S. has experienced trade deficits for decades without causing economic harm. They believe that Congress cannot simply delegate legislative power to the president, stating that “Constitutional limits on authorization apply in this case because the executive branch claims almost unlimited power to implement large-scale taxation and launch global trade wars.”
The Department of Justice, however, stated that presidents have historically used trade regulation to handle diplomatic affairs and ensure national security, and Congress effectively granted the president authority to regulate imports in emergencies by approving the IEEPA. The announcement of a national emergency by President Trump is seen as a political issue, and the Department of Justice has no authority to overturn it retroactively. The Department wrote in court documents, “It is not uncommon for Congress to grant broad discretion to the executive branch regarding foreign affairs.”
The three-judge panel handling the V.O.S. case includes Judge Timothy Reif, nominated by Trump, known for his protectionist stance, serving as the Chief Legal Counsel of the U.S. Trade Representative’s Office during the Obama administration. Another judge, Gary Katzmann, a former federal prosecutor and former judge of the Massachusetts Appeals Court, was nominated by Obama to serve as a trade court judge. The third judge, Jane Restani, was appointed as a judge of the court in 1983 by President Ronald Reagan and served as the Chief Justice of the court.
U.S. Treasury Secretary Scott Bessent stated on Sunday, May 11, that there had been “substantial progress” in trade talks between the U.S. and China in Geneva, Switzerland. U.S. Trade Representative Jamieson Greer, involved in the negotiations, said, “The fact that we were able to reach consensus so quickly speaks to the fact that the gap between the two countries may not be as large as one might imagine.” Greer emphasized, “Remember, what we came here for – the U.S. has a massive $1.2 trillion trade deficit, so the president declared a national emergency and imposed tariffs. We believe an agreement reached with our Chinese partners will help us address the national emergency.”
(Adapted from reporting by The Wall Street Journal)