Federal Appeals Court Temporarily Reinstates Trump’s Sweeping Tariffs Amid Legal Battle

WASHINGTON, May 30 (Alliance News): A federal appeals court on Thursday temporarily reinstated former President Donald Trump’s broad tariffs, a day after a U.S. trade court ruled he had exceeded his authority in imposing them and ordered an immediate block.

The U.S. Court of Appeals for the Federal Circuit paused the lower court’s decision to review the government’s appeal, with responses due by early June.

The tariffs, known as the Liberation Day tariffs, targeted imports from most U.S. trading partners, including additional levies on goods from Canada, Mexico, and China—linked to allegations of fentanyl flow through these countries.

The trade court had ruled the president exceeded his authority by using the International Emergency Economic Powers Act, which is designed for national emergencies, arguing that tariff imposition is Congress’s power.

Trump’s administration vowed to fight the ruling, either on appeal or by using other presidential powers.

Trump himself criticized the decision on social media, calling it a “horrible, Country threatening decision” that would “completely destroy Presidential Power.”

Responses from U.S. trading partners were cautious, with Britain calling it a domestic legal matter and Canada affirming the ruling aligns with its view that the tariffs were unlawful. Financial markets showed cautious optimism but remained wary due to the ongoing appeals.

The tariffs have already caused significant economic impact, costing companies over $34 billion in lost sales and higher costs. Some tariffs on steel, aluminum, and autos remain unaffected, as they were imposed under different national security grounds.

Legal experts representing small businesses affected by the tariffs said the appeals court’s stay is a procedural step and that the harms faced by businesses due to the tariffs are significant.

While Trump paused most import duties for 90 days in April to negotiate deals, few agreements have been reached. The ongoing legal uncertainty around tariffs complicates trade talks and could delay new deals with key partners like Japan.

Analysts warn that until the appeals process concludes, uncertainty will continue to weigh on trade and business decisions across industries.