Trump's Broad Tariffs Can Stay in Place While Legal Challenges Continue

President Donald Trump’s trade policies just got a temporary boost. A federal appeals court has ruled that his broad tariffs can stay in place

A federal appeals court has temporarily granted President Donald Trump’s administration the right to keep imposing broad tariffs, even though a lower court ruled that they overstepped presidential powers.

The ruling upholds tariffs that Trump introduced using the International Emergency Economic Powers Act (IEEPA) to respond to illegal immigration and fentanyl smuggling, tying them to economic sanctions.

However, it leaves Trump’s earlier tariffs on steel, aluminum, cars, and car parts untouched. Those were enacted under Section 232 of the Trade Expansion Act, which grants the president authority to impose tariffs based on national security concerns.

That law is separate from IEEPA and remains unaffected in this case.

Earlier this year, the Court of International Trade ruled against the Trump administration, stating that the president lacked the authority to impose a 10% universal tariff, so-called reciprocal tariffs, and targeted taxes on imports from Mexico, Canada, and China.

The lower court ruled that IEEPA does not grant the president the power to modify, cancel, or suspend trade agreements with another country, a claim made by the Trump administration.

Nevertheless, the appeals court has now stayed that ruling, recognizing “substantial arguments” presented by both sides and indicating that a full review of the issue will be expedited, with a decision expected by the end of summer.

The appeals court judges said the issue is "of the greatest importance" and will be speedily decided.

“We are not ruling on the merits of the case, but rather on the question of whether to stay the lower court’s ruling and the administrative action ordered by that court,” said the appeals court.

“Having carefully considered the matter, we have determined to stay the lower court’s ruling and to expedite the administrative appeal.”

The ruling follows a petition by the Biden administration to halt the lower court ruling and allow the tariffs to continue in the meantime.

The appeals court approved that request.

Announcing the decision, the appeals court said: “The president’s use of IEEPA to respond to a crisis at the southern border and the smuggling of fentanyl into the United States is a question of pressing national importance.”

The ruling adds another chapter in the ongoing legal battle over Trump’s trade policies, which have frequently shifted and sparked reactions from U.S. companies and global markets.

Earlier this year, a federal appeals court ruled that presidents do not have the authority to use wartime powers to seize a U.S. subsidiary of a British company in order to maintain a critical program for transporting nuclear material.