Trump Wins, Appeals Court Pauses Lower Court Decision Blocking Tariffs
President Donald Trump’s tariffs will remain in effect for the time being, after a federal appeals court ordered on Tuesday to stay a lower court judgment that had halted them.
The United States Court of Appeals for the Federal Circuit granted the stay and ordered an expedited examination of the lawsuit, which concerns whether Trump abused his power under federal law.
Five small companies and a coalition of states are challenging President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs, claiming that it was illegal, Fox News reported.
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Earlier this year, the United States Court of International Trade ruled in favor of the plaintiffs and issued an injunction blocking the tariffs. That ruling is currently on hold pending further review.
The Federal Circuit determined that both sides presented compelling arguments and that a stay was warranted under the legal criteria utilized to consider such requests.
The court’s brief order stated that the stay was required to maintain the status quo while the appeal is pending. The case will now be considered by the whole bench of active judges in an en banc session, a rare occurrence reserved for cases of extreme legal importance.
Oral arguments are planned for July 31 at 10:00 a.m. in Courtroom 201 of the Federal Circuit Courthouse in Washington, D.C.
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The Liberty Justice Center, which represents the five firms, questioned the court’s decision to keep the tariffs in place temporarily, but welcomed the speedy assessment.
“We’re disappointed the federal circuit allowed the unlawful tariffs to remain in place temporarily,” said Jeffrey Schwab, Senior Counsel and Director of Litigation at the Liberty Justice Center.
“It’s important to note that every court to rule on the merits so far has found these tariffs unlawful, and we have faith that this court will likewise see what is plain as day: that IEEPA does not allow the president to impose whatever tax he wants whenever he wants. We are 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.
In a statement to Fox News, White House spokesperson Kush Desai defended the Trump administration’s executive authorities and applauded the stay order issued by the United States Circuit Court of Appeals.
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“The Trump administration is legally using the powers granted to the executive branch by the Constitution and Congress to address our country’s national emergencies of persistent goods trade deficits and drug trafficking. The US Circuit Court of Appeals’ stay order is a welcome development, and we look forward to ultimately prevailing in court,” Desai said.
Last week, a federal judge in San Francisco threw out California’s case against Trump’s tariffs.
Judge Jacqueline Scott Corley, who was chosen by former President Joe Biden, gave California Gov. Gavin Newsom and Attorney General Rob Bonta some bad news after they sued Trump and several federal agencies in April.
The case was already in the U.S. District Court for the Northern District of California, but the Trump administration asked the judge to move it to the U.S. Court of International Trade for New York.
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Instead, she threw out Newsom and Bonta’s whole case. This meant that the two Democrats could appeal to the U.S. 9th Circuit Court of Appeals, which is known for being very left.
Democrats in California said that Trump’s tariffs, which were put in place under the International Economic Emergency Powers Act without being approved by Congress, go against the separation of powers principle. However, the Trump administration says that the tariffs are necessary to deal with a national emergency caused by the trade deficit with other countries.
Two decisions last week said that Trump’s plan to put 10% “Liberation Day” taxes on goods from China, Mexico, and California was not legal. Scott Corley’s decision comes after those findings.
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A three-judge panel on the trade court in New York and an Obama-appointed judge in the District Court in Washington, D.C., both said that Trump’s taxes went beyond what the International Emergency Economic Powers Act allowed.
