President Donald Trump’s tariffs will remain in effect, for now, a federal appeals court ruled on Tuesday night.
The president’s “Liberation Day” tariffs may stay in place during the appeal process while the court considers the legality of the measures. The federal decision temporarily reverses a lower court’s ruling that found Trump had overstepped his authority, according to Reuters.
The decision applies to broad-based tariffs affecting most U.S. trading partners, as well as targeted duties on imports from Canada, China, and Mexico amid ongoing pressure for them to do more to stop the illegal flow of immigrants and synthetic opioids across the U.S. border, the Associated Press reported.
The court has not yet ruled on whether Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs is lawful, but agreed to pause the lower court’s decision while it hears arguments, which are scheduled for July 31.
Trump is the first U.S. president to use IEEPA, a 1977 law historically used to impose sanctions on enemies of the U.S., to impose tariffs.
Tuesday’s ruling follows a May 28 decision by the U.S. Court of International Trade, which held that the Constitution grants Congress — not the president — the power to impose taxes and tariffs.
The tariffs have created turbulence for global markets and American businesses, many of which have struggled to adjust supply chains and pricing strategies amid shifting policy.
The ruling on Tuesday does not impact tariffs implemented under separate legal frameworks, which include those on steel and aluminum.
