U.S. appeals court allows Trump tariffs to stay in place during legal challenge

A federal appeals court has ruled that former Trump’s broad tariffs can remain in effect while legal appeals continue.

The decision temporarily suspends a lower court ruling that found Trump exceeded his authority by imposing the tariffs under the International Emergency Economic Powers Act (IEEPA) — a law typically used for national security sanctions.

The contested tariffs include Trump’s so-called “Liberation Day” duties on most U.S. trading partners, as well as specific tariffs on Canada, China, and Mexico. Trump claimed the actions were aimed at addressing issues such as fentanyl trafficking and the U.S. trade deficit, though critics argued these did not meet the legal threshold for a national emergency under IEEPA.

A three-judge panel of the U.S. Court of International Trade had earlier ruled that only Congress has the constitutional power to impose tariffs, prompting the Trump administration to appeal. The Federal Circuit put that decision on hold pending further review.

The lawsuits challenging the tariffs were brought by 12 states and several small businesses that import goods from targeted countries, claiming the tariffs were illegal and harmful to commerce. While several legal cases are ongoing, no court has yet upheld Trump’s sweeping interpretation of emergency powers for tariff use.

This article was written by Eamonn Sheridan at www.forexlive.com.