The ongoing legal battle over President Trump’s tariffs has taken another not completely unexpected turn, as a federal appeals court has decided to keep the tariffs in effect—at least for now. This decision comes amid a debate over the scope of presidential authority in trade matters, with implications for businesses, international relations and the broader U.S. economy.
Background: The Tariff Dispute
Since the start of his second term, President Trump has aggressively used tariffs as a tool to attack trade discrepancies and drug trafficking he considers to a national emergency. Relying on the International Emergency Economic Powers Act (IEEPA), Trump imposed duties on a range of countries, including Canada, Mexico and China. These actions, particularly the so-called “Liberation Day” tariffs announced in April, have sparked a global trade war and raised concerns about the stability of the world economy.
Not everyone agrees with the president’s approach and a coalition of five small businesses, supported by a group of Democratic state attorneys general, challenged the legality of these tariffs in the U.S. Court of International Trade. In a unanimous decision, a three-judge panel found that Trump had exceeded his authority under IEEPA, ruling that Congress had not given the president the unilateral power to impose such tariffs. The court also noted that even if lawmakers had wanted to delegate such broad authority, they could not do so without clear limits.
Appeals Court Steps In
The Trump administration quickly appealed the trade court’s decision, arguing that halting the tariffs would undermine months of foreign-policy decision-making and sensitive diplomatic negotiations. The Justice Department warned that lifting the tariffs could harm the nation’s economic well-being and national security.
Yesterday Tuesday June 10, 2025 the U.S. Court of Appeals for the Federal Circuit granted the administration’s request to keep the tariffs in place while the case is considered. The court has scheduled oral arguments for July 31, 2025 meaning the tariffs will remain in effect for at least the next two months. All active judges on the court will participate in the case, underscoring its significance. The losing party is expected to seek review at the Supreme Court, meaning the final word on Trump’s tariffs could still be months—or even years—away.