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Donald Trump was given a temporary nod by the US appeals court to use his emergency powers to keep collecting tariffs on foreign goods.
US President Donald Trump (Photo Credit: X)
US President Donald Trump received temporary permission from an appeals court on Thursday (local time) to continue collecting tariffs using his emergency powers, a day after a different court ruled that he had exceeded his authority by putting broad taxes on foreign goods.
The US Court of Appeals for the Federal Circuit said the tariffs from April 2 (Liberation Day tariffs) can stay in place for now, while the White House challenges the earlier court ruling.
“The request for an immediate administrative stay is granted to the extent that the judgments and the permanent injunctions entered by the Court of International Trade in these cases are temporarily stayed until further notice while this court considers the motions papers,” the court’s order said, The Independent reported.
Earlier on Wednesday, a US trade court blocked Trump’s tariffs, ruling that the President wrongly used his emergency powers under the 1977 International Emergency Economic Powers Act (IEEPA) to declare a national emergency and put tariffs on imports from almost every country around the world. However, the Trump administration disagreed with the court’s decision and started the process to challenge it.
The trade court’s order came as a setback for the Trump administration, whose trade policies have shaken the international markets ever since the Republican leader was sworn in on January 20.
Trump’s policies were challenged in at least seven lawsuits, out of which a combination of two cases led to the US court of international trade’s order. One such case was filed by a group of five small businesses, and the other from 12 states of the US.
“The reason that he chose IEEPA was he thought he could do this unilaterally without much oversight by Congress. The court saw through that,” said Jeffrey Schwab, a senior counsel at the Liberty Justice Center, who argued on behalf of the small businesses.
The trade court said the US has had trade deficits for almost 50 years, which doesn’t count as a sudden or serious emergency. On Thursday, another judge, Rudolph Contreras, gave a separate ruling that blocked tariffs on two toy companies from Illinois, making Trump’s trade plan more difficult.
Trump’s original tariffs under the 1977 emergency law — announced on what he called “Liberation Day” (April 2) — included up to 50% tariffs on countries that sold more to the US than they bought, and a standard 10% tariff on most others. He paused the higher tariffs for 90 days to allow talks, but kept the 10% ones in place. India was also impacted as it imposed 26% tariffs until the pause. India and the US are currently negotiating a Bilateral Trade Agreement.
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Washington D.C., United States of America (USA)
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