Liberty Justice Center Celebrates Second Major Victory in Legal Challenge to Trump Administration’s “Liberation Day” Tariffs

News Release from Liberty Justice Center, August 29, 2025

On August 29, 2025, the Liberty Justice Center celebrated a second major win at court in its legal battle against the Trump Administration’s unconstitutional “Liberation Day” tariffs.

In a 7-4 ruling issued moments ago, the U.S. Court of Appeals for the Federal Circuit upheld the U.S. Court of International Trade’s unanimous May 28 decision in favor of the Liberty Justice Center’s clients—a decision which held that the Trump Administration’s tariffs are unconstitutional and enjoined them from continuing.

The Liberty Justice Center, along with constitutional scholar Ilya Somin, filed a lawsuit to challenge the “Liberation Day” tariffs on April 14, representing five small businesses whose operations would be decimated by the tariffs. The lawsuit was joined by leading appellate lawyers and constitutional scholars Judge Michael W. McConnell and Neal Katyal after the Trump Administration appealed to the Federal Circuit.

In today’s decision, the Federal Circuit Court of Appeals found that the Trump tariffs “are unbounded in scope, amount, and duration,” they “apply to nearly all articles imported into the United States, . . . impose high rates which are ever-changing and exceed those set [by Congress,] and are not limited in duration.” And the Court affirmed the Court of International Trade’s holding, finding that the Trump tariffs “assert an expansive authority” that is “beyond the authority delegated to the President by IEEPA.”

Today’s ruling reiterates the arguments that the Liberty Justice Center and co-counsel Neal Katyal made before the federal appeals court on July 31—the International Emergency Economic Powers Act (IEEPA) does not give the President unilateral authority to impose tariffs on any country he wants, at any time he wants, at any rate he wants, for any reason he wants.

“For the second time in this case, a federal court has held that the President’s so-called “Liberation Day” tariffs are unlawful,” said Jeffrey Schwab, Senior Counsel and Director of Litigation at the Liberty Justice Center. “The President cannot lawfully impose tariffs on his own; and IEEPA does not give him unlimited unilateral tariff authority. This decision protects American businesses and consumers from the uncertainty and harm caused by these unlawful tariffs.”

“The decision today is a powerful reaffirmation of our nation’s core constitutional commitments from our nation’s Founders, especially the principle that Presidents must act within the rule of law. It is that commitment to the rule of law that brought my parents, and millions of others, to this country, and which stands as a beacon of freedom and hope around the globe.” Says co-counsel Neal Katyal.

The government could file appeal today’s decision by filing a petition for writ of certiorari to the U.S. Supreme Court. The Liberty Justice Center’s legal team will continue to defend its clients and challenge the tariffs, regardless of legal venue, at no cost to its clients.

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