Appeals Court Reinstates Trump’s Global Tariffs
A federal appeals court has temporarily reinstated former President Donald Trump’s global tariffs, just one day after a lower trade court ruled them unconstitutional. The Court of International Trade found Trump had overstepped his authority by using the 1977 International Emergency Economic Powers Act to impose tariffs without Congress, calling it a violation of the separation of powers. That ruling would have scrapped a 10% import tax for all countries, and higher tariffs on countries like China, Mexico, and Canada.
The appeals court’s stay means the tariffs will remain in place for now, as the legal battle continues. Small businesses and several states have challenged the duties, claiming they’ve upended supply chains and threatened livelihoods. “The loss of critical suppliers and customers… is a direct threat to the very survival of these businesses,” said Jeffrey Schwab of the Liberty Justice Center, which represents five companies suing the government. Trump, meanwhile, slammed the original ruling as “horrible” and “Country threatening,” saying it would “completely destroy Presidential Power” if upheld.
Despite the temporary reprieve, experts say the decision weakens Trump’s trade leverage and could impact ongoing negotiations with countries like Japan. Analysts expect the issue to land in the Supreme Court eventually. While the president still has other legal tools to impose targeted tariffs, former trade negotiator Dmitry Grozoubinski warned, “That stick just got considerably more ephemeral.”
