A unanimous three-judge panel of the U.S. Court of International Trade (CIT) on Wednesday delivered a significant blow to the Trump administration’s tariff policies, declaring the “Liberation Day” tariffs unlawful.
The ruling, in the case of V.O.S. Selections, Inc. v. Trump, hands a win to the Liberty Justice Center and the five small businesses it represented, who argued the President exceeded his legal authority.
The court found that the International Emergency Economic Powers Act (IEEPA) does not grant the President unlimited unilateral power to impose tariffs. The tariffs in question were imposed by President Donald Trump on April 2, 2025, under a “national emergency.”
The CIT’s decision emphasized that if IEEPA were interpreted to give the President such broad tariff-levying authority – on any country, at any rate, at any time – it would likely violate the U.S. Constitution’s separation of powers, which explicitly grants Congress the authority to regulate commerce and impose tariffs.
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While Congress can delegate some tariff authority to the President, the court noted it must do so clearly and with defined limitations. The CIT rejected the administration’s interpretation of IEEPA to avoid potential constitutional conflicts.
The court’s opinion in V.O.S. Selections, Inc. v. Trump and a related case, State of Oregon v. U.S. Department of Homeland Security, applies not only to the “Liberation Day” tariffs but to all Trump administration tariffs imposed under IEEPA. This includes tariffs previously levied on goods from China, Mexico, and Canada.
“We’re delighted by the decision of the Court of International Trade enjoining the President’s so-called ‘Liberation Day’ tariffs,” said Jeffrey Schwab, Senior Counsel and Director of Litigation at the Liberty Justice Center. “This ruling reaffirms that the President must act within the bounds of the law, and it protects American businesses and consumers from the destabilizing effects of volatile, unilaterally imposed tariffs.”
Co-Counsel Ilya Somin echoed this sentiment, stating, “It’s great to see that the court unanimously ruled against this massive power grab by the President. The ruling emphasizes that he was wrong to claim a virtually unlimited power to impose tariffs, that IEEPA law doesn’t grant any such boundless authority, and that it would be unconstitutional if it did.”
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Victor Schwartz, a plaintiff in the case and owner of V.O.S. Selections, Inc., expressed his relief. “I am elated by the ruling… This is a win for my small business along with small businesses across America – and the world for that matter,” Schwartz said. He also noted their awareness of an appeal already filed by the government, stating, “we firmly believe in our lawsuit and will see it all the way through to the United States Supreme Court.”
The decision also drew praise from watchdog groups. Melinda St. Louis, director of Public Citizen’s Global Trade Watch, commented, “Trump abused sweeping, unstrategic tariffs as part of a corrupt, authoritarian power grab to bully foreign countries and force U.S. companies to bend the knee to him and his billionaire friends. We welcome the court’s decision striking down Trump’s misuse of tariffs.”
The ruling sets the stage for potential appeals and further legal battles over the scope of presidential power in international trade and the imposition of tariffs.
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