A federal appeals court has temporarily reinstated former President Donald Trump’s sweeping tariffs, just one day after the U.S. Court of International Trade ruled that he had overstepped his authority under the International Emergency Economic Powers Act (IEEPA) of 1977.
The Court of Appeals for the Federal Circuit issued an administrative stay, allowing the tariffs to remain in effect while the legal challenge proceeds. The appeals court has ordered the plaintiffs to respond by June 5 and the administration by June 9.
The reinstated tariffs include a 10% universal tariff on most imports, 25% duties on goods from Canada and Mexico, and a 20% tariff on Chinese products. The Trump administration had justified these tariffs as necessary for national security and to address trade imbalances.
The legal back-and-forth has created uncertainty for businesses and markets, with industry leaders calling for a swift and clear resolution to the tariff situation to foster economic stability.
The case is expected to progress to the U.S. Supreme Court, where the administration will seek a definitive ruling on the scope of presidential authority under the IEEPA.
As the legal battle continues, the Trump administration remains committed to its protectionist trade agenda and is exploring alternative legal avenues to sustain the tariffs.
The outcome of this case could have significant implications for the future of U.S. trade policy and the balance of power between the executive and legislative branches.
