Court Grants Government Request to Maintain Tariff Regime Through July
The US Court of Appeals for the Federal Circuit in Washington, DC approved the Trump administration’s request Tuesday to maintain its tariff policies while expediting consideration of the legal challenge. This decision extends a temporary stay of a lower court ruling that found President Trump overstepped his authority in implementing the tariffs.
The appellate court scheduled oral arguments for July 31, ensuring these controversial trade measures will likely remain in effect for at least two more months. The ruling comes after the Trump administration argued Monday that reinstating the tariffs’ suspension would cause “irreparable economic and national security harm.”
Legal Battle Over Tariff Authority Intensifies
Since beginning his second term, President Trump has implemented a series of tariff measures that have roiled global trade markets and threatened to upend the world economy. His “Freedom Day” tariffs imposed April 2, along with previous duties on Canada, Mexico, and China, rely on the International Emergency Economic Powers Act (IEEPA) – legislation that doesn’t explicitly authorize tariff imposition.
The legal challenge originated from a lawsuit filed by five small American businesses affected by the tariffs, represented by the nonpartisan legal advocacy group Freedom Justice Center. Last month, the US Court of International Trade – which has domestic jurisdiction over trade disputes – ruled that the tariffs exceeded presidential authority, marking the first major judicial rebuke of Trump’s tariff policies.
Jeffrey Schwab, attorney for the Freedom Justice Center, expressed disappointment with Tuesday’s appellate decision but welcomed the accelerated timeline: “While we’re disappointed the Federal Circuit is allowing these illegal tariffs to remain in place temporarily, we appreciate the court’s agreement to expedite consideration of this critical matter.”
He emphasized that every court to rule on the merits so far has found the tariffs unlawful: “We’re confident the appellate court will similarly recognize the obvious truth – IEEPA doesn’t grant the president unchecked authority to impose taxes whenever he chooses.”
Economic Impact Concerns Raised
Plaintiffs had warned that prolonged tariff enforcement during litigation could prove fatal for affected businesses, even if they ultimately prevail in court. Their court filings noted: “What good is a tariff refund to a business that’s already gone bankrupt and ceased operations?”
The US Department of Justice countered that the lower court’s injunction would undermine months of diplomatic efforts and sensitive negotiations while harming national economic interests. In its stay request, the DOJ argued: “This injunction threatens to disrupt carefully calibrated foreign policy decisions and sensitive international negotiations while damaging our nation’s economic well-being and national security.”
Uncertain Path Forward
Tuesday’s court order doesn’t reveal the appellate panel’s ultimate ruling, acknowledging that both parties presented compelling arguments on the merits. Legal experts anticipate the losing side will likely seek review from the Supreme Court.
The decision maintains status quo for international trade relations while setting up a pivotal July hearing that could ultimately determine the fate of Trump’s controversial tariff regime. The prolonged legal battle continues to create uncertainty for global markets and businesses navigating America’s evolving trade policies.
Related topics:
