Trump tariffs may remain in effect while appeals proceed, US appeals court rules
A U.S. federal appeals court has ruled that former President Donald Trump’s tariffs will stay in place while an ongoing legal challenge unfolds. The decision delays a lower court’s earlier ruling that found the tariffs illegal under emergency powers law.
Tariffs Temporarily Protected by Court Ruling
On June 10, the U.S. Court of Appeals for the Federal Circuit allowed the tariffs to remain active. The court agreed to hear the case en banc, meaning all 11 judges will participate instead of the usual three. The hearing is scheduled for July 31, 2025.
This ruling comes after the Court of International Trade struck down the tariffs on May 28. That court said Trump had overstepped his authority under the International Emergency Economic Powers Act (IEEPA).
Trump’s Trade Actions: Background
In 2018 and 2019, Trump imposed broad tariffs on imports from countries like China, Canada, and Mexico. His administration argued the tariffs were needed to protect U.S. jobs and address unfair trade practices. They used emergency powers under IEEPA to justify the decision.
Critics say the move misused emergency authority. The lower court agreed, finding that the law was not designed for long-term trade restrictions.
Legal Fight Over Presidential Power
The key legal question is whether a president can use emergency powers to bypass Congress and impose tariffs. Supporters say the president must act quickly in times of crisis. Opponents argue that unchecked authority opens the door to misuse and weakens Congress’s role.
The appeals court did not settle this question yet. Instead, it paused the lower court’s ruling, keeping the tariffs in place for now.
Legal experts believe the case could reach the U.S. Supreme Court if the final decision is contested.
Business Reactions: “We’re Stuck Again”
Importers and trade groups expressed frustration. Many had expected relief from rising costs after the initial ruling last month. That hope is now on hold.
“It’s another punch to the gut,” said one trade group representative. “We’ve changed our supply chains and budgets for years. We deserve clarity, not more delays.”
Smaller businesses are especially vulnerable. Some may not survive if they continue to pay high import duties without a clear end date.
Refunds on past tariffs are also paused. Critics say delayed refunds mean little for companies already facing financial trouble.
The Biden Administration’s Position
The Biden administration defended keeping the tariffs in place. Officials argued that a sudden reversal could hurt trade negotiations and weaken U.S. leverage against countries like China.
Although Biden has not expanded Trump’s tariffs, he has kept most of them. He uses them as tools in broader trade and national security talks.
Trump Responds to Ruling
Trump praised the court’s decision. At a campaign rally, he called the ruling proof that his trade policies work.
“These tariffs saved American jobs,” he said. “We’re going to bring even more back when I return in 2025!”
What Comes Next?
The appeals court will hold oral arguments on July 31. After that, the judges will decide whether to uphold or overturn the lower court’s decision. The result could:
- End the tariffs permanently
- Keep them in place indefinitely
- Send the issue to the Supreme Court
Until then, the tariffs remain active.
Conclusion
The court’s decision adds more uncertainty to U.S. trade policy. For businesses, the delay means higher costs and more risk. For lawmakers, it raises new questions about presidential power. And for voters, it’s a reminder that the effects of past policies still shape today’s economy.
As legal experts, businesses, and political leaders watch closely, the outcome of this case could redefine how much authority a president has over trade in the future.
