President Donald Trump is currently permitted to continue levying tariffs, courtesy of a recent federal appeals court ruling. The news arrived just one day after a lower trade court announced most of those tariffs as illegal. That ruling made headlines, particularly for White House officials who had protested that the court was going too far.
The appeals court acted quickly to put the lower court’s edict on hold. That leaves the tariffs in place—at least until the next session of the courts, which is set for June 5.
What’s behind the legal dispute
A group of states and small firms took Trump to court for overreaching his authority when enforcing sweeping tariffs, which cover Chinese, Mexican, Canadian, and even European Union imports. The tariffs, a focal point of Trump’s trade agenda, are aimed at China, Mexico, Canada, and the EU. They’re meant to protect American companies and fight issues like fentanyl smuggling, the White House said.
The trade court replied that Trump applied a 1977 law—the International Emergency Economic Powers Act—to impose sweeping duties without Congressional approval. That legislation does not give the president that power, the court stated.
The White House pushed back against that attack, contending that foreign and economic policy decisions are better left to politicians rather than judges. Press Secretary Karoline Leavitt stated the court ruling could disrupt sensitive trade talks.
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Trump’s response: Hopefully, the Supreme Court intervenes
Trump took to social media on Thursday to denounce the lower court decision as “horrible” and urged the Supreme Court to quickly reverse it. His top trade adviser, Peter Navarro, however, continued to state that the tariff agenda is “alive and well.”
As Navarro keeps the record straight, even if the courts shoot down the current policy, Trump will find a way to make it happen—maybe by exercising other trade laws.
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What could happen next?
The battle in court over Trump’s tariffs could go all the way to the Supreme Court. For now, the appeal court ruling leaves the duties in place until the next hearing. Yet still, there is a lot of uncertainty, especially among small business owners.
One toy company owner, Kara Dyer, said the back-and-forth has made it nearly impossible to plan for the future. “I was happy when the trade court ruled,” she said. “But now I’m back to feeling unsure. It’s all so chaotic.”
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Is Trump’s power being checked?
A few lawyers say the trade court ruling was a long-overdue check on presidential power. Attorney Ilya Somin, who helped with the legal case, said Trump’s use of emergency powers was “an enormous power grab.”
Others still believe that courts eventually will come down in favor of the president. Policy analyst Terry Haines said courts are inclined to afford the president some leeway on matters related to trade and national security.
Either way, Trump’s bargaining power in wielding tariffs as leverage could be undercut now. As former trade negotiator Dmitry Grozoubinski put it, “That big stick Trump was using just got a lot smaller.”
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