• U.S. appeals court hears challenges to Trump's tariffs, questioning their legality under emergency powers.
• The court scrutinizes claims that the International Emergency Economic Powers Act (IEEPA) justifies unilateral tariff imposition.
• Arguments arise from small businesses and 12 states challenging the tariffs as unconstitutional.
• A decision from the court could set a precedent influencing future presidential powers over trade policies.
• Trump's tariffs are set to increase on August 1, impacting a broad range of trading partners.

The U.S. Court of Appeals for the Federal Circuit is currently assessing the legality of President Trump's extensive tariffs as he approaches an August 1 deadline to potentially implement higher rates. This legal scrutiny comes from both small businesses and a coalition of 12 Democratic-led states arguing that Trump acted beyond his authority by invoking the International Emergency Economic Powers Act (IEEPA), a law not historically used for imposing tariffs, according to South China Morning Post and CBS News.

During oral arguments, judges frequently challenged the government's interpretation of IEEPA, pointing out that the law does not mention tariffs. There’s skepticism about how the president's claim of a national emergency justifies sweeping tariffs, and Judge Jimmie Reyna noted that "IEEPA doesn’t even mention the word 'tariffs'," highlighting the case's contentious nature, according to Reuters and Los Angeles Times.

Trump's administration argues that significant threats, such as the country's trade deficit and issues surrounding fentanyl trafficking, warrant these emergency tariffs. However, legal representatives for the challengers, including Neal Katyal, criticizes this approach as a severe overreach of executive power, asserting that it grants the president "the ability to do whatever he wants, whenever he wants, for as long as he wants," according to India Times and Reuters.

The legal debate stems from Trump's "Liberation Day" tariffs imposed on April 2, 2025, impacting nearly all imports and drawing immediate backlash in the courts. The stakes are high, as a favorable ruling for the plaintiffs could significantly remodel presidential powers concerning economic policy moving forward, as the case is expected to escalate to the Supreme Court, reports Reuters and ABC News.

While tariff revenues have significantly increased, raising concerns about price inflation for consumers and disrupted markets, the legal tussle highlights a complex intersection of economic policy and constitutional authority. The Trump administration portrays these tariffs as necessary tools for negotiating better trade deals, yet the legal framework continues to be fiercely contested in court, as pointed out by various analysts, including those from Al Jazeera and Reuters.