A federal judge dismissed California’s lawsuit challenging tariffs imposed under the International Emergency Economic Powers Act (IEEPA), marking a key moment in the debate over presidential trade authority.
Led by Governor Newsom and AG Bonta, the state argued that the tariffs, known as “Liberation Day” taxes on goods from China, Mexico, and Canada, violated constitutional limits and bypassed Congress.
Judge Jacqueline Scott Corley dismissed the case on procedural grounds—citing lack of standing—without ruling on the constitutional issues, allowing California to appeal to the Ninth Circuit, which has a history of scrutinizing executive power.
IEEPA gives the president broad emergency powers, but critics say it’s being used improperly for routine trade policy. Other courts have ruled against similar tariffs, and California hopes its appeal will prompt a precedent-setting ruling.
The Trump administration defends the tariffs as essential for national security, warning that blocking them would hurt diplomacy. The case raises fundamental questions about separation of powers, as Congress controls trade while the president directs foreign policy. A Supreme Court review may follow if appellate rulings conflict. These legal battles also touch on U.S. compliance with international trade law and could reshape the balance between executive and legislative power for years.