President Donald Trump’s controversial tariffs will remain in effect for now, after a federal appeals court on Tuesday issued a stay on a lower court decision that had blocked their enforcement.
The U.S. Court of Appeals for the Federal Circuit granted the Trump administration’s request to pause the ruling from the U.S. Court of International Trade, which earlier this year had sided with a coalition of states and small businesses challenging the legality of the tariffs. The appeals court also agreed to fast-track the case, scheduling oral arguments for July 31 in an en banc hearing, meaning the case will be reviewed by all active judges on the court.
At the heart of the legal dispute is whether Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA), a 1977 law traditionally used to address national security threats. Critics argue that Trump improperly used the statute to impose sweeping tariffs on foreign goods by framing persistent trade deficits and drug trafficking as national emergencies.
The Liberty Justice Center, which represents the five small businesses involved in the suit, criticized the court’s decision to leave the tariffs in place pending appeal.
“We’re disappointed the Federal Circuit allowed the unlawful tariffs to remain temporarily,” said Jeffrey Schwab, Senior Counsel at the Liberty Justice Center. “Every court that has ruled on the merits so far has found the tariffs to be unlawful. We are confident that the full court will recognize what is clear: the IEEPA does not give the president unlimited authority to impose taxes.”
Despite the setback, Schwab praised the court’s decision to hear the case on an expedited schedule, calling it “an encouraging sign of the case’s importance.”
Meanwhile, the Trump administration defended its actions and welcomed the stay. White House spokesperson Kush Desai reiterated the administration’s position that the tariffs are a lawful and necessary tool.
“The Trump administration is legally using the powers granted by Congress and the Constitution to confront our national emergencies — including chronic trade imbalances and transnational drug smuggling,” Desai said. “We welcome the appeals court’s decision and remain confident that the president’s authority will be upheld.”
The full legal opinion has been posted online, and the case is now poised to become a pivotal test of presidential power over trade and economic policy.
Oral arguments will be held on July 31 at 10:00 a.m. in Courtroom 201 at the Federal Circuit courthouse in Washington, D.C.
With input from Fox News.
