U.S. Appeals Court Temporarily Reinstates Trump Tariffs

The appeals court has asked both sides to submit briefs before June 9. In the meantime, tariffs will remain in effect during the appeals.

Trump agreed to a Chinese trade deal.

Quick overview

  • A U.S. federal appeals court has temporarily reinstated Donald Trump's tariffs after a trade court ruled he exceeded his authority.
  • The appeals court did not provide an explanation for its decision and has set deadlines for both parties to submit responses.
  • The tariffs, which include a general 10% duty and higher rates on specific countries, are linked to national security concerns regarding fentanyl.
  • This ruling adds uncertainty to trade negotiations and may impact U.S. relations with major trading partners.

A U.S. federal appeals court on Thursday temporarily reinstated Donald Trump’s sweeping tariffs, just one day after a trade court ruled that the former president had exceeded his authority in imposing them and ordered an immediate halt.

The U.S. Court of Appeals for the Federal Circuit in Washington did not issue an opinion or explanation for its decision but instructed the plaintiffs in the case to file their response by June 5, and the government to respond by June 9.

Wednesday’s unexpected ruling from the U.S. Court of International Trade had threatened to overturn—or at least delay—the implementation of the so-called “Liberation Day” tariffs on most of America’s trading partners. It also affected import duties on products from Canada, Mexico, and China, which the Trump administration had linked to those countries’ alleged roles in facilitating the flow of fentanyl into the U.S.

The contested tariffs include a general 10% duty on goods from most countries, along with sharply higher rates targeting specific partners: 145% on Chinese products and 25% on imports from Canada and Mexico.

The Trump administration maintains that the tariffs are justified on national security grounds and has indicated it is prepared to seek an emergency stay from the Supreme Court if necessary.

The appeals court has asked both sides to submit briefs before June 9. In the meantime, the tariffs will remain in effect during the appeals process.

The decision injects fresh uncertainty into ongoing trade negotiations and could have significant implications for U.S. relations with key international partners.

ABOUT THE AUTHOR See More
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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