A federal appeals court has granted a temporary suspension of a lower court’s ruling that deemed most of President Donald Trump’s global tariffs illegal, allowing the controversial import taxes to remain in place for now. The decision marks a crucial legal victory for the Trump administration as it fights to maintain one of its core trade policy tools.
The lower court, the U.S. Court of International Trade, had ruled that Trump exceeded his authority by imposing broad tariffs under the 1977 International Emergency Economic Powers Act without congressional input. The judgment threatened to dismantle tariffs on goods from China, Mexico, Canada, and others levies Trump had justified as necessary for national security and combating fentanyl smuggling.
However, the appeals court paused the ruling while litigation continues. A hearing is scheduled for June 5.
The White House quickly criticized the trade court’s initial decision, calling it an example of “judicial overreach.” Spokesperson Karoline Leavitt warned that undermining the president’s authority on economic and diplomatic matters would cripple U.S. governance. Trump himself blasted the ruling on social media, urging the Supreme Court to reverse what he called a “horrible” decision.
Despite the reprieve, the legal battle has sown uncertainty for U.S. businesses. Toymaker Kara Dyer, whose company imports goods from China, said the unpredictability surrounding tariffs makes planning nearly impossible. Experts also noted the broader implications. Trade lawyer Ilya Somin described the tariffs as an “enormous power grab,” while analyst Dmitry Grozoubinski said the ruling has weakened Trump’s leverage in international negotiations.
While tariffs on cars, steel, and aluminum—enacted under separate legislation—remain unaffected, the case raises broader questions about presidential authority on trade. Trump advisers suggest alternative legal paths exist, such as invoking the Trade Acts of 1974 or 1930, to reimpose tariffs if necessary.
The case appears destined for the Supreme Court, with both sides preparing for a landmark decision that could redefine the limits of executive power in trade policy. For now, Trump’s tariffs stand but the legal and political fight is far from over.
