Trump’s Tariffs Can Stay In Place During Appeal Process, Says Federal Court

The Federal Circuit has not yet determined whether the former president acted within his legal powers when invoking the International Emergency Economic Powers Act (IEEPA) to justify the tariffs

The lower court’s ruling, issued by the US Court of International Trade on May 28, had found that the Constitution gives Congress, not the president, the authority to levy tariffs

Source : X/White House

In a significant legal development, a federal appeals court in Washington, DC, has ruled that former US President Donald Trump’s broad tariff measures can remain in effect while a legal battle over their constitutionality plays out. The decision was issued on Tuesday, June 10, 2025, by the US Court of Appeals for the Federal Circuit, according to a Reuters report.

These tariffs, imposed on a wide array of imports from virtually all US trading partners, including specific levies targeting Canada, China, and Mexico, will continue under what the Trump administration calls its “Liberation Day” trade policy.

Appeals Court Fast-Tracks Review

The Federal Circuit has not yet determined whether the former president acted within his legal powers when invoking the International Emergency Economic Powers Act (IEEPA) to justify the tariffs. However, the court emphasised the “exceptional importance” of the case and has opted for an en banc hearing, meaning all 11 judges on the court will weigh in, bypassing the standard three-judge panel review. Oral arguments are scheduled for July 31.

The lower court’s ruling, issued by the US Court of International Trade on May 28, had found that the Constitution gives Congress, not the president, the authority to levy tariffs. It concluded that Trump had overstepped his powers by using IEEPA, a 1977 law designed for national security emergencies, as the basis for the tariffs.

Litigation Draws Broad Legal Firepower

Two separate lawsuits have brought the tariffs under legal scrutiny. One case, spearheaded by the Liberty Justice Center, represents five small businesses impacted by the duties. The other was filed by a coalition of 12 US states. Both argue that Trump’s justification for the tariffs, citing trade deficits and drug trafficking, does not constitute the type of “extraordinary threat” required under IEEPA, claims the report.

The ruling issued Tuesday temporarily halts the lower court’s decision from taking effect, enabling the tariffs to remain while the appeal progresses.

No Precedent Yet For Emergency Tariff Powers

Trump’s administration has argued that the emergency powers law grants him broad leeway to set tariffs without Congressional approval. He has claimed the tariffs targeting Canada, China, and Mexico are aimed at curbing illegal fentanyl imports, and that the broader tariffs serve to address the US trade deficit.

However, critics argue that longstanding trade imbalances do not rise to the level of a national emergency. At least five other cases are pending in federal courts, each challenging Trump’s use of IEEPA in the trade arena. Although one other court has similarly ruled against the tariffs, no appellate court has yet upheld Trump’s sweeping interpretation of his authority under the emergency powers law, the report added.