On Wednesday, the U.S. Court of International Trade ruled that the International Emergency Economic Powers Act (IEEPA) does not grant President Trump the unilateral authority to launch a broad global tariff campaign. The decision effectively invalidated his April 2 reciprocal tariff order, which included 30% tariffs on Chinese imports, 25% on selected goods from Mexico and Canada, and a blanket 10% tariff on most other imports.
However, on Thursday, a federal appeals court granted the Trump administration’s request to stay the ruling. The pause gives Trump’s legal team time to prepare its appeal and continue arguing that the IEEPA empowers the president to impose such tariffs.
Before the appeals court acted, White House Press Secretary Karoline Leavitt criticized the lower court decision, accusing the judges of “overstepping their bounds.”
Experts say the long-term impact remains uncertain. Alan Brugler of Brugler Marketing noted that much will depend on the outcome of the appeal process and whether the tariffs remain in effect during it. He also questioned how the ruling might affect ongoing trade negotiations, including deals currently under discussion with the European Union.
Mike North of Ever.Ag added that this legal battle is part of a broader pattern, where nearly every major Trump action has been challenged in court. He believes this ruling is unlikely to weaken the administration’s leverage in trade talks, especially since other legal frameworks — such as the 1974 Trade Act — still offer the president multiple avenues for imposing trade measures.
While the appeals process continues, a portion of Trump’s tariff policy remains in effect — particularly those imposed under different legal authorities during his first term, such as duties on steel and aluminum.
For now, Trump’s aggressive trade strategy survives to fight another day, but further legal and political battles lie ahead.
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