US Appeals Court Keeps Trump's New Tariffs in Effect Pending Final Ruling

Background: A New Tariff After Supreme Court Setback

For the new tariffs, Trump invoked a trade law from 1974. That statute permits the president to impose import duties for a limited period in certain circumstances, and the appeals court's own reasoning hinged in part on the temporary nature of that authority. The 1974 trade law cited by Trump limits the tariff to a maximum of 150 days.

A few days after the lower court's decision, the appeals court initially suspended that ruling. The appeals court has now confirmed the initial suspension of the lower court's ruling, a decision it justified by citing both the strength of the government's arguments and the practical consequences of abruptly ending the tariffs.

The Court of International Trade in New York concluded in early May that Trump had exceeded his authority with the new instrument and suspended the tariffs. That lower-court ruling triggered the current round of appeals and set the stage for the appellate judges' interim assessment.

The Court's Reasoning

The appeals court stated that the Trump administration has sufficiently demonstrated that it is likely to succeed on the merits. In the court's view, the US government would suffer irreparable harm if the tariffs were unlawfully struck down before a final ruling, and the appellate panel also noted that the administration had presented convincing legal arguments. "Zudem habe Trumps Regierung hinreichend dargelegt, „dass sie in der Sache wahrscheinlich Erfolg haben wird," the court wrote in its order.

The appeals court stated that both sides had presented compelling arguments. The acknowledgment suggested that while the government had the stronger case at this preliminary stage, the judges saw genuine legal merit on both sides heading into the merits phase of the litigation.

A ruling on the merits of the case has not yet been issued. The appeals court's order is an interim measure, and the judges have not yet determined whether the tariffs themselves are lawful under the 1974 trade law. The case will continue to move through the court system in the coming months, with the appellate panel expected to issue a fuller decision before any further escalation.

Plaintiffs and the Path Ahead

The plaintiffs in the case against the government include the state of Washington and two companies. They argue that Trump's use of the 1974 statute exceeds the powers granted to the presidency and that the tariffs were imposed without the congressional authorization required for sweeping new taxes on imports. The state of Washington and the corporate plaintiffs contend that the economic harm caused by the duties justifies immediate judicial intervention.

It is possible that the case will go to the Supreme Court in Washington after a ruling by the appeals court. Both the government and the plaintiffs have signaled that they are prepared to seek further review at the highest court, meaning the legal fight over the tariffs could extend well beyond the appellate ruling. Whoever loses at the appeals stage is widely expected to ask the justices to take up the matter, ensuring that the constitutional question of executive tariff authority will not be settled quickly.