US Tells CAFC 'Ruinous' Economic Fallout Will Follow Adverse Ruling on IEEPA Tariff Power
The U.S. told the U.S. Court of Appeals for the Federal Circuit on Aug. 11 that stripping the president of his authority to impose tariffs under the International Emergency Economic Powers Act would lead to "ruinous" economic consequences in light of the trade deals reached with the EU, Indonesia, the Philippines, Japan and the U.K. (V.O.S. Selections v. Donald J. Trump, Fed. Cir. # 25-1813).
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Filing a notice of supplemental authority, the government said the trade deals support the U.S. request for a stay if the Federal Circuit affirms the Court of International Trade's decision to vacate President Donald Trump's executive orders implementing the IEEPA tariffs. The government argued that a sudden revocation of the president's tariff authority under IEEPA "would have catastrophic consequences for our national security, foreign policy, and economy."
The notice said Trump believes the U.S. wouldn't be able to pay back the "trillions of dollars that other countries have already committed to pay, which could lead to financial ruin." The government said the president's other tariff authorities "are short-term, not nearly as powerful, and would render America captive to the abuses that it has endured from far more aggressive countries."
If the U.S. were made to pay back the "trillions of dollars committed to us," the country could go from "strength to failure the moment such an incorrect decision took effect," the government argued. The U.S. said a decision affirming the trade court "could lead to a 1929-style result," whereby "people would be forced from their homes, millions of jobs would be eliminated, hard-working Americans would lose their savings, and even Social Security and Medicare could be threatened."
The Federal Circuit heard oral argument in the case on July 31, with many judges questioning the limit of the president's tariff authority under IEEPA (see 2507310058).