The Court of International Trade struck down President Donald Trump’s global tariff policies Wednesday, ruling that the president doesn’t have the authority under economic emergency legislation to impose his sweeping global tariffs. 

This ruling affects one of Trump’s biggest priorities within his economic agenda, and his efforts to negotiate trade with foreign nations. 

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What is the court of international trade?

This court was established in 1980 through the Customs Court Act, replacing the U.S. Customs Court following concerns that the CIT’s predecessor was unable to handle increasingly complex international trade. The CIT can handle a wider array of international trade matters due to its specialized jurisdiction, its ability to apply traditional legal principles in unique international trade cases, and its broad powers to grant relief in cases.

The CIT ensures judicial review for civil actions arising from U.S. customs and international trade laws, both domestically and internationally. It has exclusive jurisdiction over disputes about tariffs imposed by U.S. Customs and Border Protection and any decision made by the U.S. International Trade Commission, according to its website.

In the federal court system, the CIT sits below the U.S. Court of Appeals for the Federal Circuit and the Supreme Court. No courts sit directly below it because it is a specialized, stand-alone court.

The CIT primarily hears appeals from the Department of Commerce, but can also hear cases initiated from complaints filed within the court. Rulings from the CIT can be appealed to the U.S. Court of Appeals, but could be elevated to the Supreme Court.

Who serves on the CIT?

The CIT is composed of nine judges, appointed by the president for a life term. During the hearing on Trump’s tariffs, a three-judge panel unanimously ruled that his efforts were illegal and an overstep of his legal authority. 

The judges who ruled on Trump’s tariffs were former Reagan-appointed Judge Jane Restani, Obama-appointed Judge Gary Katzmann, and Trump-appointed Judge Timothy Reif.

The judges said the International Emergency Economic Powers Act, which Trump used to enforce the tariffs, does not give a president authority to levy universal duties on imports. 

“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the judges wrote in their decision. 

What notable decisions has the CIT made?

The CIT has historically ruled on cases that have reshaped U.S. trade policy, affected exports and imports, and have shaped the global trade sphere. 

In 2001, during U.S. v. Mead Corporation, the CIT assisted in shaping the judicial approach to interpreting agency rules and clarifying the judicial review standards for them. The court previously gave “Chevron deference” in hearings, a legal doctrine that dictates when a court should defer to the interpretation of statutes — it now uses “Skidmore deference,” a principle where courts can consider, but not fully accept, an interpretation of a statute.

More recently, in JBF RAK LLC v. U.S. in 2014, the court highlighted the limits of the Department of Commerce’s discretion and argued the need for consistency and explanation during administrative shifts. 

What makes the CIT different from other courts?

The CIT is the only court that can hear cases focusing on international trade, and civil actions against the U.S., its officers, and agencies that arise in law related to international trade. 

Its powers include granting relief appropriate to trade cases, including money judgments, writs of mandamus — a court order to compel public officials or government agencies to perform a specific duty — and preliminary or permanent injunctions, according to its website. 

How will Trump respond to the tariff ruling?

Per the Wednesday order, Trump has ten days to implement the injunction. However, minutes after the CIT’s ruling, the Trump Administration appealed the ruling to the U.S. Court of Appeals, and could elevate the case to the Supreme Court.

“It is not for unelected judges to decide how to properly address a national emergency,” White House deputy press secretary Kush Desai said. 

COURT BLOCKS ‘LIBERATION DAY’ TARIFFS, TRUMP APPEALS

Desai said that trade deficits have piled up, leading to a national emergency that has killed American communities, left U.S. workers behind, and weakened the U.S. defense industrial base.

“President Trump pledged to put America First, and the Administration is committed to using every lever of executive power to address this crisis and restore American greatness,” he said.