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Trump's tariffs aren't going away just yet. A federal appeals court is keeping them in place for now as it considers the White House's rebuttal.
On Wednesday, a three-judge panel with the US Court of International Trade ruled that Trump’s tariffs exceeded his presidential authority. Today, the US Court of Appeals for the Federal Circuit granted a temporary stay on that ruling.
"The request for an immediate administrative stay is granted," the court said, but only "until further notice while this court considers the motions papers."
The stay was requested by the White House, which is appealing the ruling. “A stay is critical to avoid immediate irreparable harm to United States foreign policy and national security,” the Trump administration argued in a court document, citing how invalidating the tariffs risks undermining the White House’s ongoing trade negotiations with dozens of countries.
The Trump administration wants to bring the case before the US Court of Appeals for the Federal Circuit. But it also says it might appeal the ruling to the Supreme Court, if necessary.
The US Court of International Trade ruled that Trump’s tariffs take the International Emergency Economic Powers Act (IEEPA) too far. The decision threatens to unravel Trump’s 10% tariff on dozens of countries and a 30% tariff on Chinese imports.
Earlier today, White House Press Secretary Karoline Leavitt described the court’s ruling as “another example of judicial overreach.” She also argued that Trump properly used his presidential powers under the IEEPA, which was originally passed in 1977 so that the White House could regulate global trade to tackle unusual and extraordinary threats.
In issuing his tariffs on China and dozens of countries, Trump has cited the threat of fentanyl flowing into the US and the country's trade deficit. "The president’s rationale for imposing these powerful tariffs was legally sound, and grounded in common sense,” Leavitt said in a press conference. “President Trump correctly believes that America cannot function safely long-term if we are unable to scale advanced domestic manufacturing capacity.”
“The courts should have no role here,” she later added. “America cannot function if President Trump or any other president for that matter has their sensitive diplomatic or trade negotiations railroaded by activist judges.”
The Court of International Trade judges disagreed, ruling that IEEPA was never designed to let the president use tariffs as leverage in trade negotiations. However, Leavitt said: “Ultimately, the Supreme Court must put an end to this, for the sake of our Constitution, and our country."
These rulings add more uncertainty to a tariff situation that is already shaky, given Trump’s tendency to raise and then lower the rates. But if the federal appeals court decides to lift the stay, then the Trump administration would be obligated to withdraw the tariffs, which have already ensnared numerous electronics, including PC graphics card, video game consoles, and smartphones.