Court Upholds Trump Tariffs Pending Supreme Court Appeal
WASHINGTON – A federal appeals court has allowed former President Donald Trump’s controversial tariffs to remain in effect until October 14, giving his administration time to seek a review by the U.S. Supreme Court.
The 7-4 decision from the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., comes amid a broader legal fight over Trump’s economic policies, including a separate challenge to the independence of the Federal Reserve. Both disputes now appear headed for the Supreme Court, setting up a high-stakes legal battle that could reshape U.S. trade and monetary policy.
Trump, who has made tariffs a cornerstone of his second-term agenda, condemned the ruling as partisan. “If these Tariffs ever went away, it would be a total disaster for the Country,” he wrote on Truth Social, while expressing confidence that the Supreme Court would ultimately back his policies.
Tariffs Under Legal Scrutiny
The case focused on two sets of tariffs imposed earlier this year—“reciprocal” tariffs introduced in April and additional duties in February on China, Canada, and Mexico. Trump justified the measures under the International Emergency Economic Powers Act (IEEPA), a 1977 law historically used to freeze assets and impose sanctions during national emergencies.
The appeals court disagreed with Trump’s interpretation, ruling that IEEPA does not explicitly grant the president authority to impose tariffs. “It seems unlikely that Congress intended… to grant the President unlimited authority to impose tariffs,” the judges wrote.
Despite the setback, the decision does not affect other tariffs Trump enacted under different trade laws, including his levies on steel and aluminum imports.
Market and Policy Impact
Business leaders and trade experts warned that the ruling adds new uncertainty for the economy. “The last thing the market or corporate America needs is more uncertainty on trade,” said Art Hogan, chief market strategist at B. Riley Wealth.
Former Commerce Department official William Reinsch suggested the administration was expecting this outcome. “It’s common knowledge they were preparing a Plan B, likely through other statutes to keep the tariffs alive,” he said.
A Bigger Legal Showdown
The tariff ruling coincides with Trump’s push to remove Federal Reserve Governor Lisa Cook, a move critics say could undermine the central bank’s independence. Together, the disputes raise the prospect of the Supreme Court ruling on both the president’s authority over trade and monetary policy in the same year.
“This puts Trump’s entire economic agenda on a potential collision course with the Supreme Court,” said Josh Lipsky of the Atlantic Council. “It’s unlike anything we’ve seen before.”
Multiple lawsuits, including one filed by California and another by a group of small U.S. businesses, argue that only Congress has the constitutional authority to impose tariffs and taxes. Lower courts have already ruled against Trump, finding he overstepped his authority, but his administration has appealed.
With the Supreme Court’s conservative majority already shaping key aspects of Trump’s second-term policies, the outcome of these cases could define the limits of presidential power on trade and beyond.
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