Trump Tariffs Reinstated by Appeals Court as SCOUTS Plea Looms/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ A federal appeals court has temporarily reinstated President Trump’s sweeping tariffs, blocking a lower court’s ruling that they were unconstitutional. The decision keeps uncertainty high for global trade partners and U.S. companies. Trump is now urging the Supreme Court to uphold his tariff powers permanently.
Trump Tariffs Legal Reversal: Quick Looks
- Appeals court grants emergency stay, restoring Trump’s broad tariffs for now.
- Lower court ruled Trump exceeded authority under the International Emergency Economic Powers Act (IEEPA).
- Plaintiffs and DOJ must file responses by June 5 and June 9, respectively.
- Tariffs on imports from China, Canada, and Mexico remain, pending final decision.
- Markets react cautiously, bracing for continued economic uncertainty.
- Trump slams court decision, calls for Supreme Court intervention.
- Non-U.S. firms consider U.S. expansion to avoid tariff impacts.
- Some tariffs unaffected, including those on steel and autos under national security laws.
Deep Look: Trump’s Tariffs Get Temporary Lifeline as Legal Fight Escalates
WASHINGTON — In a major twist in the ongoing trade saga, President Donald Trump’s wide-ranging tariffs are back in effect—at least temporarily—after a federal appeals court on Thursday blocked a lower court ruling that deemed them unconstitutional.
The U.S. Court of Appeals for the Federal Circuit stayed the decision of the U.S. Court of International Trade, which had ruled Trump exceeded presidential authority under the International Emergency Economic Powers Act (IEEPA). The court found that Trump’s “Liberation Day” tariffs violated the Constitution’s delegation of tariff powers to Congress.
Now, as the legal appeals process unfolds, the reinstated tariffs create fresh waves of uncertainty across global markets and trade negotiations.
A Strategic Legal Move
- Plaintiffs (Liberty Justice Center) must respond by June 5.
- Trump administration must file its reply by June 9.
This fast-paced legal process will shape the near-term status of tariffs on goods from China, Mexico, Canada, and more than 50 other countries.
“This is only a procedural step,” said Jeffrey Schwab of the Liberty Justice Center, representing the small businesses that sued. “But our clients face real harm from these tariffs, and we believe the court will ultimately agree.”
Trump Defiant, Blasts Judiciary
In a Truth Social post, President Trump criticized the lower court’s ruling, calling it a “horrible, Country-threatening decision” and questioning whether judges had political motivations.
“If allowed to stand, this would completely destroy Presidential Power — The Presidency would never be the same!” Trump wrote.
He also expressed hope that the U.S. Supreme Court would quickly reverse the decision, signaling his willingness to escalate the battle to the highest judicial level.
Market Response: Jittery but Resilient
The markets showed muted optimism Thursday after the trade court initially blocked the tariffs. However, with the stay now in place, investors remain on edge.
- Analysts warn that tariff-related uncertainty may slow trade negotiations with allies like Japan and the European Union.
- The reinstated tariffs keep the effective U.S. tariff rate at 15%, up from the 2–3% average before Trump took office.
- According to Oxford Research, the rate would have dropped to around 6% had the trade court ruling stood.
Trump had briefly paused the tariffs in early May to allow for talks, but only the UK has signed a temporary agreement. Other countries are reluctant to commit under such legal instability.
Economic Impact and Corporate Fallout
Trump’s trade war has disrupted supply chains and prompted cost-cutting across industries:
- Gap Inc., American Eagle, and Ulta Beauty have all reported increased uncertainty in financial forecasts due to tariffs.
- Major firms like General Motors, Ford, and Diageo have scrapped annual projections entirely.
- International firms including Honda, Campari, Roche, and Novartis are reportedly relocating operations to the U.S. to avoid import duties.
Even as companies brace for more pain, Trump’s administration remains defiant. Officials say they will use alternate presidential powers if the courts strike down the current tariff regime.
Tariffs on National Security Grounds Remain Untouched
Separate from the IEEPA tariffs, Trump’s duties on steel, aluminum, and autos, imposed under national security laws, remain in force. These sector-specific levies have not been challenged successfully in court.
“We’ll keep using every tool available to protect American industries and jobs,” a senior White House official said Thursday.
Global Reaction: Watching Cautiously
- Canada’s Prime Minister Mark Carney welcomed the initial trade court ruling, calling it “consistent with Canada’s position.”
- The UK, Germany, and the EU Commission offered no comment, noting that the case remains a domestic legal matter.
- China has yet to issue a formal response, but bilateral talks scheduled for next week remain on hold.
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