US appeals court temporarily reinstates Trump’s tariff powers amid legal challenge

Trump admin wins temporary stay on trade court ruling blocking emergency tariffs

On Thursday, a US federal appeals court granted temporary approval for President Donald Trump to continue imposing tariffs under emergency powers, just a day after a separate trade court ruled he had exceeded his authority. The US Court of Appeals for the Federal Circuit allowed the tariffs introduced on April 2 to remain in effect while the White House proceeds with its appeal.

“The request for an immediate administrative stay is granted… until further notice while this court considers the motion papers,” the court order stated, as cited by The Independent.

Background: Lower court blocks Trump’s use of emergency powers

The development follows Wednesday’s ruling by the US Court of International Trade, which determined that Trump unlawfully invoked the 1977 International Emergency Economic Powers Act (IEEPA) to justify a sweeping set of tariffs on imports from nearly every major US trading partner.

The court emphasized that IEEPA was not intended to give the President unchecked authority to regulate trade. It stated that long-standing trade deficits do not constitute a national emergency, noting that the US has experienced such imbalances for nearly five decades.

“The reason that he chose IEEPA was that he thought he could do this unilaterally without much oversight by Congress,” said Jeffrey Schwab, senior counsel at the Liberty Justice Center, which represented a group of small businesses challenging the tariffs.

Wider legal and economic implications

Trump’s tariffs, dubbed by the administration as part of a “Liberation Day” strategy, imposed duties of up to 50% on countries with significant trade surpluses with the US, and a baseline 10% tariff on most others. Although the administration paused the steepest tariffs for 90 days to allow negotiations, the baseline levies remained in place.

The legal battle has sparked uncertainty in global markets, complicated international supply chains, and raised concerns about inflation and economic stagnation. Trump’s broader trade strategy is now under scrutiny in at least seven separate lawsuits.

The initial trade court decision stemmed from two consolidated cases: one brought by five small businesses and another by 12 US states. In addition to the appeals court stay, US District Judge Rudolph Contreras issued a narrower ruling Thursday that blocked tariffs applied to two Illinois-based educational toy companies, further complicating the administration’s position.

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