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The Cato Institute warns that the federal government is testing external restrictions on executive power through President Donald Trump's use of emergency tariffs and hopes the courts will stop using it.
Cato in VOS Selections, Inc. In the new and its court summary filed in Trump, Cato argues that under the International Emergency Economic Forces Act (IEPA), the president imposes a huge authority on his legal authority (IEPA), by imposing huge tariffs on imports from countries such as China, Mexico and Canada.
The wisdom of the liberals argues that the move undermined the separation of the constitution and expanded the power of the executive in a way that Congress never intended.
“This is an important case of whether the president can actually impose tariffs,” said Brent Skorup, a legal researcher at Cato College, in an exclusive interview with Fox News Digital. “There must be a limit – this government does not provide one.”
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The Cato Institute challenged Trump's emergency tariffs in new amicus summary, arguing that the separation of power and power under Ieepa's leadership undermines power (Brendan Smialowski/AFP via Getty Images)
“Tariff rates for certain products from China have risen to 145%,” he said. “And the president’s lawyers cannot provide limited principles. This tells you that the government believes there is no real ceiling, which is a problem.”
Kato's summary urged the Court of Appeal to uphold a lower court ruling that found tariffs exceeded the president's statutory authorities. The U.S. Court of International Trade ruled earlier this year that the president's use of the IEPA in such circumstances was not authorized by law. The court said the law does not allow the use of tariffs as a general tool to combat drug trafficking or trade imbalances.
Scroop said the government could not define clearly defined restrictions on its power under Ieepa.
“They can't articulate the hat,” he said. “The law does not mention duties or tariffs. It's a job for Congress.”
The government defended its actions, believing that Ieepa provided the president with the necessary tools to act quickly in a time of national emergency. Trump officials insist that both the fentanyl crisis and the U.S. trade loopholes are eligible.
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A pedestrian wore the hat of “making America great again” outside the U.S. Supreme Court in Washington, DC, on Friday, June 27, 2025. (Alison Robert/Bloomberg by Getty Image)
“There are real emergencies that no one questioned,” Scroup said. “But it is reasonable to declare an emergency to justify global tariffs or to resolve domestic trade issues, which is far beyond what most Americans consider legal use of emergency power.”
Skorup acknowledged that the real problem might be the discretion that Congress gives to the president in the first place.
“It's a bipartisan issue. The presidents of both sides have taken a vague law and extended it. Congress wrote some responsibilities in this way,” he said.
For small businesses such as VOS Choice, the fees are out of legal fees. Scroup said businesses relying on imported goods, such as VOS, have been working hard to plan because tariffs have been suspended and restored.
President Donald Trump made comments on tariffs on April 2, 2025 in the White House Rose Garden in Washington, DC, USA to hold the “foreign trade barrier” document. (Reuters/Carlos Baria/Archive Photo)
Scroup said several small businesses rely on global imports, which will become a “survival issue” when tariff rates change unexpectedly.
“The VOS option imports wine and spirits, and when tariff rates unexpectedly raise, they can’t receive products to distributors as planned,” he said. “The same is true for others, such as pipeline importers and specialist manufacturers. These companies don’t have the flexibility to absorb these costs or adjust them overnight.”
If the Court of Appeal is related to the government, it can mark a significant expansion of the president's power in trade policy. Skorup warned that such a ruling would allow future presidents to take similar actions with little supervision.
“This will bless Congress’ ability to hand over huge economic power to the president,” he said. “This will blur the separation of powers that the Constitution should protect.”
The Court of Appeal is expected to be filed later this year.
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The White House did not immediately respond to Fox News Digital's request for comment.
