Government lawyers faced stiff questioning on July 31 from appeals court judges about President Donald Trump’s authority to issue a suite of tariffs by invoking emergency powers. The case before the US Court of Appeals for the Federal Circuit has major implications for the future of Trump’s worldwide country-specific tariffs.
If the administration were to lose the case on appeal, the White House would likely seek emergency relief before the Supreme Court, Bracewell’s Josh Zive told S&P Global. But the appeals court ruling would “certainly be more than a bump in the road,” Zive said, adding a strong federal circuit opinion would lead people to reasonably conclude that there was a good chance the administration would lose in front of the Supreme Court.
It could be months, rather than days or weeks, before a decision in the appeals court, Zive said. The implications of the tariffs for the energy sector are still to be determined, since many of the tariffs have been delayed, Zive added.
“There’s a lot of consternation in the energy sector” because various input materials for energy infrastructure could be touched by the tariffs, Zive said.