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The Cato Institute warns that the federal government is using President Donald Trump’s emergency tariffs to test the limits outside the administration, and hopes the courts will stop it.
VOS Selections, Inc. v. In a new Amicus brief filed with Trump, Cato argues that it has overstepped its legal authority under the International Emergency Economic Force Act (IEEPA) by imposing sudden tariffs on imports from countries including China, Mexico and Canada.
The libertarian think tank argues that the move undermines the separation of constitutional authority, expanding enforcement over trade in ways that Congress never intended.
“This is an important case of whether the president can essentially impose tariffs every time he wishes,” Brent Skollup, a law fellow at the Cato Institute, said in an interview with Fox News Digital. “There are restrictions. This administration doesn’t provide it.”
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Cato Institute challenges Trump’s emergency tariffs at the New Amicus Brief, claiming that the administration under Yepa will postpone powers and undermine the separation of power (Brendan Smialowski/AFP via Getty Images)
“The tariff rate has risen to 145% for some products from China,” he said. “And the president’s lawyers were unable to provide restrictive principles. It tells us that the administration believes there is no real cap. That’s a problem.”
Kato’s summary urges the Court of Appeals to uphold a lower court’s decision that found tariffs exceed the president’s statutory authority. The US International Trade Court held earlier this year that the President’s use of the IEEPA in this case was not legally authorized. The court said the law does not allow the use of tariffs as a general tool to combat drug trafficking and trade imbalances.
Skorup told the court that the administration cannot define clear restrictions on powers under Ieepa.
“They couldn’t make the hat clear,” he said. “There is nothing in the law that mentions duties or customs. That’s the work of Congress.”
The administration defended its actions, claiming that Ieepa would provide the necessary tools for the president to act swiftly in a national emergency. Trump officials have argued that both the fentanyl crisis and the US trade vulnerability are eligible.
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Pedestrians wear “make America great again” hats outside the US Supreme Court in Washington, DC on Friday, June 27, 2025 (Alison Robert/Bloomberg via Getty Images)
“There’s a real emergency and no one is disputing it,” Skollup said. “However, when we justify global tariffs or declare a state of emergency to resolve domestic trade issues, it’s far beyond what most Americans perceive as a legitimate use of an emergency.”
Skorup acknowledged that the real question could be how much discretion Congress gave the President in the first place.
“It’s a bipartisan issue. The presidents of both parties have taken away the vague laws and stretched them out. Congress is part of the responsibility to write them that way,” he said.
For small businesses like VOS Selection, costs exceed legal costs. Skorup said companies that rely on imports, like VOS, are struggling to plan ahead as tariffs have been suspended and repeated revivals.
President Donald Trump holds a “foreign trade barrier” document on April 2, 2025, making a statement on tariffs at the Rose Garden in the White House in Washington, D.C.
Skorup said there are several small businesses that rely on global imports, and unexpected changes in tariff rates can result in a “survival issue.”
“VOS Selection imports wine and spirit, and if tariff rates rise unexpectedly, it will not be able to deliver products to distributors as planned,” he said. “And that applies to others, such as pipe importers and specialized manufacturers. These companies don’t have the flexibility to absorb these costs or adjust them overnight.”
If the appeal lays the administration on the court, it could mark a major expansion of the president’s power over trade policy. Skorup warned that such a ruling would allow future presidents to act similarly with little oversight.
“We will congratulate Congress on the ability to hand over immeasurable economic strength to the President,” he said. “It would obscure the separation of power that the Constitution should protect.”
A decision from the Court of Appeal is expected later this year.
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The White House did not immediately respond to Fox News Digital’s request for comment.
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