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A federal appeals court on Tuesday granted a temporary stay allowing the Trump administration to continue collecting tariffs that had previously been struck down by a lower court. The decision permits the tariffs to remain in effect while the appeals process moves forward.
Earlier, the U.S. Court of International Trade ruled against key parts of the administration’s “Liberation Day” tariff initiative, stating that the executive branch may have exceeded its statutory authority. That decision specifically targeted the administration’s imposition of a 10% global tariff, along with additional measures directed at specific countries.
The new ruling from the appeals court temporarily halts the implementation of the lower court’s decision. The panel noted that both sides presented substantial legal arguments and concluded that a stay was justified under the circumstances. The ruling does not affect separate tariffs imposed on certain sectors, such as steel and aluminum.
The appeals court has also ordered an expedited review of the case. Oral arguments are scheduled for July 31, and the court stated that the matter presents issues of “exceptional importance” that warrant prompt consideration.
The “Liberation Day” tariffs are part of former President Trump’s broader trade policy, which aimed to reduce the trade deficit, challenge foreign subsidies and dumping practices, and support U.S. manufacturing. Critics of the tariffs, including a coalition of importers and trade organizations, argue that the measures disrupted global supply chains and went beyond the legal scope of executive authority.
Attorneys for the federal government maintain that the president has wide discretion under existing trade laws to respond to economic threats and unfair practices by foreign governments. The outcome of the case could have long-term implications for how future administrations approach trade enforcement and economic policy.
Both sides are expected to submit briefs in the coming weeks.
