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Trump’s tariff power grab barrels toward Supreme Court

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A federal court fight over President Donald Trump’s authority to unilaterally impose sweeping tariffs on U.S. trading partners is expected to be appealed to the Supreme Court for review, legal experts told Fox News Digital, in a case that has already proved to be a pivotal test of executive branch authority.

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At issue in the case is Trump’s ability to use a 1977 emergency law to unilaterally slap steep import duties on a long list of countries doing business with the U.S.

In interviews with Fox News Digital, longtime trade lawyers and lawyers who argued on behalf of plaintiffs in court last week said they expect the ruling from the U.S. Court of Appeals for the Federal Circuit in a matter of «weeks,» or sometime in August or September – in line with the court’s agreement to hear the case on an «expedited» basis.

The fast-track timeline reflects the important question before the court: whether Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) when he launched his sweeping «Liberation Day» tariffs.

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FEDERAL JUDGES GRILL TRUMP LAWYERS OVER ‘LIBERATION DAY’ TARIFFS ON EVE OF ENFORCEMENT
 

President Donald Trump, alongside Secretary of Treasury Scott Bessent and then-Secretary of Commerce nominee Howard Lutnick, speaks to the press in the Oval Office of the White House on Feb. 3, 2025. (Jim Watson/AFP via Getty Images)

Importantly, that timing would still allow the Supreme Court to add the case to their docket for the 2025-2026 term, which begins in early October. That could allow them to rule on the matter as early as the end of the year. 

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Both Trump administration officials and lawyers for the plaintiffs said they plan to appeal the case to the Supreme Court if the lower court does not rule in their favor. And given the questions at the heart of the case, it is widely expected that the high court will take up the case for review.

In the meantime, the impact of Trump’s tariffs remains to be seen. 

Legal experts and trade analysts alike said last week’s hearing is unlikely to forestall the broader market uncertainty created by Trump’s tariffs, which remain in force after the appeals court agreed to stay a lower court decision from the U.S. Court of International Trade. 

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Judges on the three-judge CIT panel in May blocked Trump’s use of IEEPA to stand up his tariffs, ruling unanimously that he did not have «unbounded authority» to impose tariffs under that law. 

Thursday’s argument gave little indication as to how the appeals court would rule, plaintiffs and longtime trade attorneys told Fox News Digital, citing the tough questions that the 11 judges on the panel posed for both parties.

TARIFF FIGHT ESCALATES AS TRUMP APPEALS SECOND COURT LOSS

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Trump holds Foreign Trade Barriers document

President Donald Trump delivers remarks on tariffs in the Rose Garden of the White House, April 2, 2025. (Reuters/Carlos Barria/File Photo)

Dan Pickard, an attorney specializing in international trade and national security issues at the firm Buchanan Ingersoll & Rooney, said the oral arguments Thursday did not seem indicative of how the 11-judge panel might rule.

«I don’t know if I walked out of that hearing thinking that either the government is going to prevail, or that this is dead on arrival,» Pickard told Fox News Digital. «I think it was more mixed.»

Lawyers for the plaintiffs echoed that assessment – a reflection of the 11 judges on the appeals bench, who had fewer chances to speak up or question the government or plaintiffs during the 45 minutes each had to present their case. 

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«I want to be very clear that I’m not in any way, shape or form, predicting what the Federal Circuit will do – I leave that for them,» one lawyer for the plaintiffs told reporters after court, adding that the judges, in his view, posed «really tough questions» for both parties.

Oregon Attorney General Dan Rayfield, who helped represent the 12 states suing over the plan, told Fox News Digital they are «optimistic» that, based on the oral arguments, they would see at least a partial win in the case, though he also stressed the ruling and the time frame is fraught with uncertainty.

In the interim, the White House forged ahead with enacting Trump’s tariffs as planned.

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Pickard, who has argued many cases before the Court of International Trade and the U.S. Court of Appeals for the Federal Circuit, noted that the oral arguments are not necessarily the best barometer for gauging the court’s next steps – something lawyers for the plaintiffs also stressed after the hearing.

JUDGES V. TRUMP: HERE ARE THE KEY COURT BATTLES HALTING THE WHITE HOUSE AGENDA

Trump and Bondi

Attorney General Pam Bondi speaks alongside President Trump at the White House after the Supreme Court ruled judges cannot issue nationwide injunctions. (Joe Raedle/Getty Images)

Even if the high court blocks the Trump administration from using IEEPA, they have a range of other trade tools at their disposal, trade lawyers told Fox News. 

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The Trump administration «has had more of a focus on trade issues than pretty much any other administration in my professional life,» Pickard said. 

«And let’s assume, even for the sake of the argument, just hypothetically, that the Supreme Court says this use of IEEPA exceeded your statutory authority. The Trump administration is not going to say, like, ‘All right, well, we’re done. I guess we’re just going to abandon any trade policy.’

«There are going to be additional [trade] tools that had been in the toolbox for long that can be taken out and dusted off,» he said. «There are plenty of other legal authorities for the president. 

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«I don’t think we’re seeing an end to these issues anytime soon – this is going to continue to be battled out in the courts for a while.»

Both Pickard and Rayfield told Fox News Digital in separate interviews that they expect the appeals court to rule within weeks, not days. 

The hearing came after Trump on April 2 announced a 10% baseline tariff on all countries, along with higher, reciprocal tariffs targeting select nations, including China. The measures, he said, were aimed at addressing trade imbalances, reducing deficits with key trading partners, and boosting domestic manufacturing and production.

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Ahead of last week’s oral arguments, U.S. Attorney General Pam Bondi said lawyers for the administration would continue to defend the president’s trade agenda in court.

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Justice Department attorneys «are going to court to defend [Trump’s] tariffs,» she said, describing them as «transforming the global economy, protecting our national security and addressing the consequences of our exploding trade deficit.»

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«We will continue to defend the president,» she vowed. 

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Ex-Bush attorney general faces House Oversight questions on controversial Epstein deal

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A former attorney general under George W. Bush’s administration is testifying to House Oversight Committee investigators on Tuesday.

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Alberto Gonzales, who led the Department of Justice (DOJ) from February 2005 until mid-September 2007, is the second witness being called in the bipartisan House probe into Jeffrey Epstein and his accomplice Ghislaine Maxwell.

It’s not immediately clear how many lawmakers will appear at the closed-door deposition, which is expected to largely be staff-led. House Oversight Committee Chair James Comer, R-Ky., is likely to attend, however.

Gonzales notably led the DOJ during early talks with Florida federal prosecutors for Epstein’s infamous non-prosecution agreement, which was formed in 2007 and finalized in 2008. 

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GOP GOVERNOR NOMINEE PUSHES REDISTRICTING TO OUST STATE’S LONE HOUSE DEM

Epstein, pictured here in New York City on Feb. 23, 2011, is the subject of a bipartisan House Oversight Committee investigation. (David McGlynn)

He left shortly before it was signed, however – something Comer noted in a subpoena cover letter to Gonzales earlier this month.

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«Your tenure as U.S. Attorney General, from 2005 to late 2007, coincided with a time period when the FBI investigated Jeffrey Epstein for sex crimes, an Assistant U.S. Attorney in the Southern District of Florida prepared a draft 60-count indictment of Mr. Epstein, and the U.S. Attorney’s Office for the Southern District of Florida offered a plea bargain to Mr. Epstein, leading to the signing of Mr. Epstein’s non-prosecution agreement only one week after you left office,» Comer wrote.

The House Oversight Committee sent a flurry of subpoenas regarding Epstein earlier this month, kicking off a bipartisan investigation into the late pedophile.

In addition to Gonzales, subpoenas were also issued seeking depositions from former FBI directors Robert Mueller and James Comey, ex-attorneys general Bill Barr and Jeff Sessions, as well as former President Bill Clinton and former Secretary of State Hillary Clinton.

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Notably excluded from the list is Alex Acosta, the former Trump Labor Secretary who approved the non-prosecution agreement with Epstein while serving as a U.S. attorney in Florida.

GOP LAWMAKERS CLASH OVER STRATEGY TO AVERT GOVERNMENT SHUTDOWN CRISIS

Former Attorney General Alberto Gonzales

Alberto Gonzales, pictured here in April 2013, served as attorney general from 2005 to 2007. (Andrew Harrer/Bloomberg via Getty Images)

The subpoenas were directed via a bipartisan vote during an unrelated House Oversight subcommittee hearing on illegal immigrant children in late July.

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Renewed interest in Epstein’s case has gripped Capitol Hill after the DOJ’s handling of the matter spurred a GOP revolt by far-right figures.

The DOJ effectively declared the case closed after an «exhaustive review,» revealing Epstein had no «client list,» did not blackmail «prominent individuals,» and confirmed he did die by suicide in a New York City jail while awaiting prosecution.

Democrats seized on the discord with newfound calls for transparency in Epstein’s case – spurring accusations of hypocrisy from their Republican colleagues.

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Indeed, the bipartisan unity that the investigation was kicked off with quickly disintegrated after the first witness, Barr, was deposed last week.

Reps. Suhas Subramanyam, D-Va., and Jasmine Crockett, D-Texas, who attended part of Barr’s deposition, left the room roughly halfway through the sit-down and accused Republicans of insufficiently probing questions during their allotted time to depose Barr.

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Comer, in response, implored Democrats not to politicize a bipartisan investigation.

Divisions deepened after Comer said Barr had no knowledge of, nor did he believe, any implications of wrongdoing on President Donald Trump’s part related to Epstein.

House Oversight Committee ranking member Rep. Robert Garcia, D-Calif., who was not in the room, released a statement after the deposition, claiming Barr did not clear Trump.

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In addition to Gonzales’ deposition Tuesday, the House Oversight Committee is also expected to hear this week from former Trump Attorney General Jeff Sessions.

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Trump embiste contra la Fed y echa a una de sus gobernadoras, en una inusual medida y grave presión contra el Banco Central de EE.UU.

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El presidente Donald Trump anunció el lunes por la noche que destituye a una de las gobernadoras de la Reserva Federal de Estados Unidos (Fed), Lisa Cook, por acusaciones no probadas de fraude hipotecario, una controvertida e inusual iniciativa que intensifica la presión contra el banco central estadounidense para que siga la política que promueve de la Casa Blanca. Ella ya dijo que resistirá la decisión.

La Reserva Federal está configurada por ley para operar independientemente de la Casa Blanca. Pero últimamente la entidad ha sufrido fuertes embestidas por parte del presidente Trump, que considera que la Fed se resiste a bajar las tasas de interés y que eso perjudica a la economía estadounidense. El organismo ha insistido hasta ahora que la situación aún no se encuentra como para bajar los tipos.

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El despido de Cook, si tiene éxito, podría darle a Trump una mayoría de aliados en la junta de la Fed y así permitirle cumplir su objetivo de reducir las tasas de interés, incluso cuando la Corte Suprema ha rechazado que el presidente ejerza un control directo sobre el organismo independiente.

Expertos legales expresaron a The New York Times serias preocupaciones por la destitución de Cook y la justificación del presidente para hacerlo, ya que advirtieron que la intervención de Trump podría comprometer una institución clave para la economía, con resultados dañinos.

Lisa Cook. Foto: Reuters

En una carta a Cook que publicó en las redes sociales el lunes por la noche, Trump dijo que buscaría despedirla de inmediato, citando su autoridad para destituir a los gobernadores de la Fed por causa justificada, es decir, malversación o alguna forma de incumplimiento del deber.

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El mandatario, que ya reclamó la dimisión de Cook la semana pasada argumentando que «ha hecho algo malo», citó la recomendación de investigación penal del director de la Agencia Federal de Financiamiento de la Vivienda, Bill Pulte, a la fiscal general de EE.UU., Pam Bondi. «Como se establece en la recomendación penal (…), hay suficiente razón para creer que usted puede haber hecho declaraciones falsas sobre uno o más acuerdos hipotecarios», escribe Trump, que argumenta que Cook firmó dos hipotecas para una «residencia primaria» en dos estados diferentes en dos semanas.

Las acusaciones de fraude hipotecario son “suficientes para destituirla de su puesto», dijo Trump a Cook en su carta. El despido se basa entonces en una recomendación de un funcionario y no en una decisión judicial.

Cook: «Trump no tiene autoridad para echarme»

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Horas después, cerca de la medianoche de Washington, Cook rechazó la medida, dijo que Trump no tiene la autoridad para despedirla y que no renunciará. «El presidente Trump pretendió despedirme ‘por causa’ cuando no existe ninguna causa bajo la ley, y no tiene autoridad para hacerlo«, dijo a través de una portavoz, quien confirmó que Cook había contratado a un abogado externo para pelear el caso.

«Continuaré cumpliendo con mis deberes para ayudar a la economía estadounidense como lo he estado haciendo desde 2022″, agregó.

Las acusaciones se derivan de hipotecas que obtuvo antes de unirse a la Fed hace unos tres años. Cook es la primera mujer negra en formar parte de la junta de siete miembros de la Fed, que está presidida por Jerome Powell.

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Trump ha pasado meses presionando a Powell para que baje las tasas de interés, burlándose de él con el apodo de «demasiado tarde» y planteando varias veces la posibilidad de destituirlo. Más allá de las embestidas, sus asesores le aconsejaron no echarlo porque sería una señal muy negativa para los mercados financieros y porque el mandato de Powell como presidente de la Fed vence en mayo.

Como todo banco central independiente, la credibilidad de la Fed depende precisamente de su capacidad de actuar sin presiones políticas del gobierno de turno y los inversionistas miran con atención las decisiones sobre las tasas, que subieron drásticamente por la inflación que se desató tras la pandemia y que comenzaron a bajar suavemente al final del gobierno de Joe Biden dado que los precios se habían estabilizado.

Pero la política arancelaria de Trump hizo que la Fed decidiera frenar el descenso de las tasas porque percibe que los precios sentirán el impacto de las tarifas y no quiere que una baja de los tipos de interés caliente aún más la economía.

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Trump está en contra de esta política. Ya ha dicho que quiere un jefe de la Fed que esté dispuesto a cortar drásticamente las tasas (dos o tres puntos porcentuales) para impulsar la economía en el corto plazo y aliviar el costo de financiar los crecientes déficits.

«El presidente no ha ocultado el hecho de que esto no tiene nada que ver con las solicitudes de hipotecas de Lisa Cook», dijo Peter Conti-Brown, historiador de la Fed en de la Universidad de Pennsylvania a The Washington Post. «Esta es la escalada de un asalto prolongado y continuo a la legitimidad de la Fed y la independencia de la Fed. Es por un propósito y solo un propósito: intimidar a la Fed para que baje drásticamente las tasas de interés».

En un encuentro el viernes, Powell pareció abrir la puerta a la reducción, pero no dio pistas sobre el momento de un movimiento, que se especula que podría ser a mediados de septiembre. «El cambiante equilibrio de riesgos puede justificar un ajuste de nuestra postura política», dijo, una referencia a sus preocupaciones sobre ganancias de empleo más débiles.

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Al apuntar a Cook, Trump busca abrir más vacantes en el directorio de la Fed, y se acerca a tener una mayoría de gobernadores alineados con sus políticas. Una vacante antes de lo esperado surgió este mes cuando una de las gobernadoras, Adriana Kugler, anuncio su renuncia. Trump dijo que estaba «muy contento» con la apertura y rápidamente nombró a Stephen Miran, jefe del Consejo de Asesores Económicos de la Casa Blanca, como reemplazo hasta fines de enero, cuando expiraba el mandato de Kugler.

Si Cook es reemplazada y Miran es confirmado en las próximas semanas, le daría a Trump una probable mayoría de gobernadores que piden recortes a las tasas de interés.

Donald Trump,Reserva Federal

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Unity tested: Democrats face off over Israel-Hamas war in Gaza, dark money in politics, during DNC summer meeting

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Democrats opened their summer meeting in Minnesota on Monday with calls for unity against President Donald Trump, even as internal divisions on a host of issues threaten to erupt. 

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«We are unified towards one single goal: to stop Donald Trump and put this country back on track,» DNC Chair Ken Martin declared when he addressed the more than 400 elected party officials from all 50 states and seven territories, as the summer meeting kicked off in his home state of Minnesota.

While Democrats appeared united in their drive to counter the sweeping and controversial moves by Trump during his first seven months back in the White House, divisions among the committee members may flare on Tuesday.

DNC CHAIR DEMANDS DEMOCRATS ‘STOP BRINGING A PENCIL TO A KNIFE FIGHT’

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Democratic National Committee Chair Ken Martin addresses party members at the DNC’s summer meeting on Aug. 25, 2025, in Minneapolis, Minnesota. (Paul Steinhauser – Fox News )

That’s when the war in Gaza between Israel and Hamas, and limiting dark money in presidential politics, will both be in the spotlight as the DNC’s Resolutions Committee meets.

Competing symbolic resolutions over the war in Gaza – which was sparked by the horrific Oct. 7, 2023, sneak attack by Hamas on Israel – will be voted on by the panel.

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CLICK HERE FOR THE LATEST FOX NEWS REPORTING ON THE ISRAEL-HAMAS WAR 

Nearly 1,200 people in Israel were killed during the initial surprise attack by Hamas, with over 250 people taken hostage. In the nearly two years since the attack, over 60,000 Palestinians have been killed in Israel’s ongoing military response.

The showdown over the resolutions comes as the Democratic Party’s once nearly unshakable support for Israel has fractured amid the bloodshed. And concerns over the growing death toll among Palestinians by many in the party’s progressive base have soared this spring and summer, amid famine in Gaza.

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Palestinians carrying pans, gather to receive hot meals, on July 23, 2025.

Residents in Gaza line up for food amid worsening famine on July 23, 2025. (Khames Alrefi/Anadolu via Getty Images)

Recent polling indicates support for Israel’s continued military actions in Gaza is plummeting among Democrats.

One resolution, which is supported by Martin, calls for a cease-fire between Israel and Hamas.

The competing resolution calls for an arms embargo and suspension of U.S. military aid to Israel, which has long been the top American ally in the Middle East.

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The other resolution that’s bound to generate spirited debate and grab headlines on Tuesday is Martin’s push for the DNC to affirm its commitment to «eliminating unlimited corporate and dark money in our presidential nominating process beginning in the current 2028 cycle.»

While Democrats have long railed against the role of big money in politics, the resolution, which was first reported by the New York Times, calls for the creation of a new panel to propose by next summer «real, enforceable steps the D.N.C. can take to eliminate unlimited corporate and dark money in its 2028 presidential primary process.»

Outside groups such as super PACs, which are allowed to haul in unlimited contributions but are mandated to disclose their donors, have seen their influence in campaign politics multiply in recent election cycles.

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DNC CHAIR TELLS FOX NEWS PARTY HAS HIT ‘ROCK BOTTOM’

Democratic leaders and officials are gathering as the party tries to escape the political wilderness after last year’s elections, when Democrats lost control of the White House and Senate and fell short in their bid to win back the House majority. And Republicans made gains in voter demographics that previously made up key parts of the Democratic Party’s base.

The situation has only worsened for Democrats in the 10 months since last year’s election setbacks.

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The Democrats’ brand is deeply unpopular, especially with younger voters, as the party’s poll numbers continue to drop to all-time lows in national surveys. 

The DNC faces a massive fundraising deficit at the hands of the rival Republican National Committee (RNC) and voter data indicated Democratic Party registration was plunging while GOP sign-ups were on the rise in the 30 states that register voters by party.

AMID PLUNGING POLLS, ANEMIC FUNDRAISING, DEMOCRATS LOOK TO REBOUND AT PARTY’S SUMMER MEETING

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On Monday, amid talk that Democrats remain divided over a slew of policy and political issue, Martin wasn’t the only one preaching unity and downplaying any discord.

Minnesota Gov. Tim Walz, in an address to the committee members, said «there’s a division in my damn house, and we’re still married, and things are good. That’s life… We are strong because we challenge each other.»

Minnesota Gov. Tim Walz at DNC summer meeting

Minnesota Gov. Tim Walz speaks at the Democratic National Committee’s summer meeting, on Aug. 25, 2025 in Minneapolis, Minnesota. (Paul Steinhauser – Fox News)

And longtime Democratic strategist and DNC committee member Maria Cardona told Fox News, «I’m so sick of people focusing on the infighting and the circular firing squad. All of that is crap, when we have real issues, existential threats that we need to fight about, and we are all united on that front and that’s all that matters.»

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Martin, who was elected DNC chair in February, has weathered turmoil during his tenure so far, including a controversy sparked by now-former vice chair David Hogg’s backing of primary challengers against older House Democrats in safe blue districts.

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RNC communications director Zach Parkinson, responding to Monday’s DNC session, told Fox News that «under Ken Martin’s leadership, Democrats have sunk to their lowest approval rating in 35 years.»

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Pointing to Martin, Parkinson said «as Republicans, we think he is doing a fantastic job, and we fully endorse him to stay on as DNC Chair.»

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