Appeals court gives Trump tariffs temporary reinstatement

A day after a three-judge panel from the U.S. Court of International Trade ruled that President Donald Trump must halt his sweeping tariffs on top U.S. trade partners, a federal appeals court has allowed the tariffs to temporarily remain in place while legal proceedings continue.

The trade court had issued a strong rebuke of the president on Wednesday, declaring that Trump’s use of the International Emergency Economic Powers Act to justify a 10 percent tariff on imports from Canada, Mexico, China, and other countries was unconstitutional.

The court ruled that only Congress has the authority to impose such duties, citing the Constitution’s assignment of power to “lay and collect Taxes, Duties, Imposts and Excises” and to “regulate Commerce with foreign Nations.”

However, in a twist Thursday afternoon, the U.S. Court of Appeals for the Federal Circuit issued a temporary administrative stay of the trade court’s decision. This means the tariffs — many of which were part of Trump’s “Liberation Day” initiative and strongly impact the agricultural sector — can remain in effect while the appeals court reviews the case. The Trump administration must submit legal briefs by June 9.

The trade court’s decision had been issued Wednesday. In its 49-page opinion, the panel unanimously concluded that the International Emergency Economic Powers Act does not authorize the president to unilaterally impose sweeping tariffs.

“The Constitution assigns Congress the exclusive powers to ‘lay and collect Taxes, Duties, Imposts and Excises,’ and to ‘regulate Commerce with foreign Nations,’” the court stated. “We do not read IEEPA to confer such unbounded authority.”

Canada, Mexico, and China are the three largest importers of U.S. agricultural products.

Judge Gary Katzmann, writing for the panel, added that while the president may declare a national emergency, IEEPA allows economic action only to directly “deal with an unusual and extraordinary threat” — a condition the court said was not met by the tariff proclamations.

State attorneys general celebrated the decision. “The law is clear: No president has the power to single-handedly raise taxes whenever they like,” said New York Attorney General Letitia James. The White House, in contrast, decried the opinion, calling it a judicial intrusion into national security matters.

The ruling had given the federal government 10 days to wind down the tariffs and sets the stage for what may become a landmark Supreme Court showdown. While the administration has appealed the decision, analysts say it may try to reimpose duties using alternative legal tools, such as sections of the Trade Expansion Act of 1962 or the Trade Act of 1974.

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