Topline
President Donald Trump hailed an appeals court ruling keeping his tariffs in place temporarily as a “great and important win” Wednesday morning, falsely claiming the court upheld his “Liberation Day” tariffs—though the actual court ruling says nothing about the merits of Trump’s signature policy, and judges could still strike the tariffs down.
President Donald Trump holds up a chart while announcing his “Liberation Day” tariffs at the White … More
Getty ImagesKey Facts
A panel of judges at the U.S. Court of Appeals for the Federal Circuit ruled Tuesday evening to keep Trump’s “Liberation Day” tariffs on foreign imports in place while they consider the issue, pausing a ruling by the Court of International Trade that declared the tariffs were unlawful and should be blocked.
The order extends a previous court ruling the Federal Circuit issued in May, which immediately kept the tariffs in effect and paused the Court of International Trade’s ruling while the appeals court decided whether to issue a more lasting ruling.
Trump praised the court ruling in a Truth Social post early Wednesday, writing the appeals court “ruled that the United States can use TARIFFS to protect itself against other countries” and hailing the order as “a great and important win for the U.S.”
In actuality, the Federal Circuit’s ruling said nothing about whether or not the U.S. can use tariffs against other countries, but said after considering both sides’ arguments, the court concluded that a stay, which pauses the lower court’s ruling, “is warranted under the circumstances.”
The brief order does not say anything about whether or not Trump’s tariffs are lawful, and the temporary nature of the ruling—only keeping the tariffs in effect until the court issues a final decision on the tariffs’ legality—means the Federal Circuit could still ultimately decide that the tariffs are unconstitutional and strike them down.
The Liberty Justice Center, which brought one of the lawsuits against the tariffs that prompted the legal battle, expressed cautious optimism Tuesday that the Federal Circuit will still declare the tariffs unconstitutional, with attorney Jeffrey Schwab saying the group “[has] faith that this court will … see what is plain as day.”
What To Watch For
The Federal Circuit agreed to hear the tariff dispute on an expedited basis, scheduling oral arguments in the case for July 31. It’s likely the dispute will then go to the Supreme Court, as either Trump or the plaintiffs in the case are expected to appeal the Federal Circuit’s ruling no matter how the court rules.
Chief Critic
Schwab said Tuesday the Liberty Justice Center—which represented small businesses impacted by the tariffs—is “disappointed the federal circuit allowed the unlawful tariffs to remain in place temporarily.” The group is “glad the federal circuit recognized the importance of this case, and agreed to hear it before the full court on an expedited schedule,” Schwab added.
Why Could Trump’s Tariffs Be Unlawful?
At issue in the court dispute is whether or not Trump actually had the authority to impose his sweeping “Liberation Day” tariffs, which impose fees on imports from nearly all countries. Trump imposed the tariffs under the International Emergency Economic Powers Act (IEEPA), which grants presidents authority to levy some economic sanctions against other countries during national emergencies. The law does not explicitly say anything about tariffs, however, leading plaintiffs to claim Trump didn’t have the authority to impose tariffs under IEEPA—and even if he did, the U.S.’s trade imbalances with other countries are not an “emergency” that justifies invoking the law. A three-judge panel at the Court of International Trade agreed with plaintiffs, striking down Trump’s tariffs in May because IEEPA does not give him the power to impose them. That ruling is now what’s before the Federal Circuit, though a different federal district judge has also separately ruled Trump doesn’t have the power to impose tariffs under IEEPA.
Key Background
Trump announced his sweeping “Liberation Day” tariffs in April, imposing tariffs on nearly all countries despite warnings from economists that doing so could raise prices for consumers and harm the economy. The “Liberation Day” tariffs have been broadly controversial, upending global markets and sparking fears of a recession, and the Trump administration rolled back the worst of the tariffs in response to the chaos, keeping a 10% baseline rate in place. Small businesses and Democratic leaders have challenged the tariffs in court as a result: the two lawsuits at issue before the Federal Circuit were brought by small businesses and Democratic-led states, while other businesses and the state of California have brought separate legal claims. The Trump administration has insisted on the tariffs’ legality despite the lawsuits and court rulings against them, with White House Press Secretary Karoline Leavitt claiming Trump’s tariffs are “legally sound and grounded in common sense” and the panel of judges at the Court of International Trade—which included a Trump appointee”—“brazenly abused their judicial power to usurp the authority of President Trump.”
Further Reading
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