President Donald Trump’s “Liberation Day” tariffs can stay in effect, for now, after a federal appeals court temporarily paused a lower court’s decision that struck down most of the tariffs imposed. Trump placed tariffs on countries, including China, Canada, Mexico and others, using the International Emergency Economic Powers Act.
Lower court rules tariffs unlawful
A three-judge panel with the United States Court of International Trade ruled Wednesday that Trump’s tariffs are unlawful and the 10% reciprocal tariffs are too far-reaching. The court said what Trump called an “emergency” did not meet the legal definition under that law.
Instead, the court said it was really a trade issue rather than a national emergency, and Congress should handle that trade policy, not the president alone.
Appeals court grants temporary stay
However, the Trump administration requested that the federal appeals court step in and issue an injunction to stop the ruling from taking effect. The federal appeals court said the lower court’s judgment is “temporarily stayed,” meaning it is on hold while the court takes time to look over the case.
“The United States moves to consolidate its appeals from those rulings and has applied for this court to stay the judgment and injunction pending these appeals and for an immediate administrative stay while the court considers that motion,” the appeals court said in the order.
Timeline for responses set
The court told the plaintiffs, which include some U.S. businesses, that they have one week to respond to the administration’s request. After the plaintiffs respond, the Trump administration has until June 9 to reply.
“This is merely a procedural step as the court considers the government’s request for a longer stay pending appeal,” Jeffrey Schwab, a lawyer for the business plaintiffs, said in a statement, as reported by CNBC. “We are confident the Federal Circuit will ultimately deny the government’s motion shortly thereafter, recognizing the irreparable harm these tariffs inflict on our clients,” Schwab said.
White House responds to court involvement
Before the federal appeals court decision came down Thursday afternoon, White House Press Secretary Karoline Leavitt posted to X, saying:
“America cannot function if President Trump has his sensitive diplomatic and trade negotiations derailed by activist judges. This judicial overreach must be stopped.”
The White House has not yet publicly responded to the ruling.