US appeals court reinstates tariffs

US appeals court reinstates tariffs

Businesses deal with more uncertainty surrounding applicable tariffs after 90-day pause

by Manal Barakat, SeaNewsEditor


Update: 30.05.2025

 

The United States Court of Appeals for the Federal Circuit has temporarily reinstated tariffs imposed by President Donald Trump. This decision comes after a lower court ruling had blocked these tariffs, citing that the President had exceeded his authority.

 

On 28 May 2025, the U.S. Court of International Trade ruled that Trump's tariffs, which were assessed on nearly every U.S. trading partner, were "contrary to law".

 

However, on 29 May 2025, the Federal Circuit issued the decision to allow the tariffs to remain in place while the court considers the government's appeal.

 

This move temporarily delays the enforcement of the lower court's ruling and reinstates the tariffs for the time being.

 

Businesses will need to navigate the uncertainty surrounding tariffs once again.

 

The next hearing in the case will take place on 5 June.

 

Original article: 29.05.2025

 

A US trade court issued a significant ruling on Wednesday, invalidating several tariff orders implemented by President Donald Trump.

 

The decision, handed down by the Court of International Trade, found that Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose wide-ranging tariffs lacked sufficient legal grounding.

 

According to a report by The New York Times, "The law, which primarily concerns trade embargoes and sanctions, does not even mention tariffs. But Mr. Trump adopted a novel interpretation of its powers."

 

Notably, the court’s decision does not address tariffs on specific industries such as automotive, steel, and aluminium, which were enacted under a different statute.

 

The judges ruled that all tariffs implemented under the IEEPA framework since January, including part of the tariffs against China, Canada, and Mexico, were unlawful and ordered their immediate cessation.

 

The Trump administration responded by filing an appeal, challenging the court’s authority and requesting reconsideration of the ruling.

 

The Court of International Trade’s position is that Congress holds exclusive rights to regulate international commerce, a constitutional authority not overridden by presidential emergency powers.

 

 

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Source: New York Times, Reuters