A federal appeals court has decided to keep President Donald Trump’s tariffs in place while it reviews a lower court’s ruling that questioned their legality. The U.S. Court of Appeals for the Federal Circuit, based in Washington, D.C., announced on Tuesday that it would allow Trump’s “Liberation Day” tariffs to continue affecting imports from various countries, including Canada, China, and Mexico.
This decision comes as the court considers whether Trump had the authority to impose these tariffs under an emergency economic powers act. The lower court had previously ruled that the president exceeded his authority by using this act, which is intended for national emergencies, to impose taxes on imports. The appeals court has not yet made a final ruling on the matter but has allowed the tariffs to remain in effect while it reviews the case.
The court noted that the issues raised are of “exceptional importance,” which is why it is taking the unusual step of having the full 11-member court hear the appeal instead of a smaller panel. Arguments are scheduled for July 31.
These tariffs have caused significant disruption in the market, affecting companies of all sizes as they adjust their supply chains and pricing strategies. The ruling does not impact other tariffs that were imposed under traditional legal authority, such as those on steel and aluminum.
In May, a three-judge panel from the U.S. Court of International Trade ruled that only Congress has the power to impose tariffs, not the president. This ruling came after lawsuits from the Liberty Justice Center, representing small businesses, and a coalition of 12 states led by Oregon. The small businesses argued that the tariffs were not a legitimate way to address issues like trade deficits and drug trafficking.
Jeffrey Schwab, an attorney representing the small businesses, expressed disappointment with the appeals court’s decision but remains hopeful. He pointed out that previous courts have found the tariffs unlawful and believes this court will ultimately agree.
On the other hand, a White House spokesman praised the appeals court’s decision, stating that the administration is using its legal powers to address national emergencies related to trade and drug trafficking. Trump has justified the tariffs as necessary to combat illegal fentanyl trafficking and to address the U.S. trade deficit.
The legal battles over these tariffs are ongoing, with several other cases challenging their legitimacy. So far, no court has supported the broad emergency powers that Trump claims allow him to impose these tariffs.