V.O.S. Selections, Inc. v. Trump

Authored by: Jeremy J. Gustrowsky

In a landmark decision, the Federal Circuit has ruled that the President does not have unlimited authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). The case, V.O.S. Selections, Inc. v. Trump, challenged a series of executive orders that imposed sweeping tariffs on imports from nearly every country, citing national emergencies related to border security, drug trafficking, and trade deficits. The court held that IEEPA’s language allowing the President to “regulate” imports does not extend to imposing tariffs of the magnitude and duration set by these executive orders.

The court’s analysis emphasized that the Constitution gives Congress—not the President—the exclusive power to levy taxes and tariffs. While Congress has sometimes delegated limited tariff authority to the President in specific statutes, those laws always use clear language and set defined limits. In contrast, IEEPA contains no explicit mention of tariffs, duties, or taxes, and its broad language was not intended to grant the President a blank check to rewrite the nation’s tariff schedule in response to a self-declared emergency.

A key part of the court’s reasoning relied on the “major questions doctrine,” which requires clear congressional authorization for executive actions with vast economic and political significance. The court found that the unprecedented scope and economic impact of the tariffs at issue—potentially raising trillions of dollars—triggered this doctrine. Since IEEPA lacks explicit authorization for such sweeping tariff powers, the court concluded the President had overstepped his authority.

While the Federal Circuit affirmed the lower court’s decision that the executive orders were invalid, it vacated the universal injunction against their enforcement and sent the case back for further consideration of the appropriate scope of injunctive relief. This decision marks a significant limitation on presidential power in trade matters and reaffirms Congress’s central role in setting tariff policy.