Appeals Court Allows Trump to Keep Tariffs Amid Legal Challenge

Key Highlights

• Appeals Court Reprieve: A federal appeals court temporarily allowed President Trump to continue collecting import taxes, despite a lower court ruling that most of his global tariffs were illegal.
• White House Opposition: The Trump administration argued the trade court's decision was judicial overreach and claimed that foreign and economic policies should be determined by the political branches, not the courts.
• Ongoing Uncertainty for Businesses: While the court case continues, businesses, particularly small companies impacted by tariffs, remain uncertain about the future of trade policies, with some expressing cautious optimism.

Although last week’s trade ruling declared that most of the President Donald Trump’s tariffs are illegal, the US appeals court permitted him to continue collecting import taxes for now.

The court ruled the tariffs were illegal because Trump did not first get permission from Congress. The decision by Trump to slap tariffs on China, Mexico and Canada, plus a general 10 percent charge on imports, was challenged by the White House, who considered it an abuse of judicial power.

Trump’s administration argued before the court that the ruling harmed his ability to shape foreign and economic policies. Spokesperson Leavitt said it is the political branches that ought to control foreign policy, not the courts. The former president took to Twitter to say he was hoping the Supreme Court would reverse the decision.

Also Read:US Court Halts Trump's Attempt to Impose 'Liberation Day' Tariffs on Imports

As a result of the temporary suspension, the tariffs will continue during the case review since the higher court has set the next hearing for June 5. The act applies mainly to tariffs on goods under the International Emergency Economic Powers Act, yet steel, aluminium and cars are not included. Because of the ruling, businesses are not sure what to expect and some are starting to talk about feeling both relieved but aware that the situation remains chaotic.

Though Trump might pursue other ways to enforce tariffs, most expect the case to go to the Supreme Court to decide the question of his trade authority.