US President Donald Trump can continue enforcing his controversial global tariffs — at least for now — following a federal appeals court decision that marks a temporary legal victory for one of his key economic policies.
The US Court of Appeals for the Federal Circuit on Tuesday granted a stay that blocks a lower court’s earlier ruling, which found Trump had overstepped his authority in implementing the tariffs. The court, based in Washington, placed the case on an expedited schedule, calling it a matter of “exceptional importance” and setting oral arguments for July 31.
The ruling extends a short-term reprieve and keeps the tariffs in effect as the Trump administration challenges a decision by the US Court of International Trade, which held that the president misused emergency powers under the 1977 International Emergency Economic Powers Act (IEEPA) to impose levies on goods from countries like China, Canada, and Mexico.
The Justice Department argued that suspending the tariffs would harm US diplomatic efforts, outweighing the economic damage alleged by small businesses such as New York-based wine importer V.O.S. Selections Inc., which said it faced bankruptcy due to rising costs.
No dissent was noted in the appeals court’s order, which stated that the administration had sufficiently demonstrated why the lower court’s injunction should remain on hold during the appeal process.
The case centers on Trump’s 10% global tariffs and specific measures such as the April 2 “Liberation Day” tariffs and those linked to alleged fentanyl trafficking. However, separate levies on steel, aluminum, and automobiles—imposed under a different statute—remain unaffected by the lower court’s ruling.
A three-judge panel had earlier found that Trump’s use of the IEEPA was not justified by legitimate emergencies and criticized the administration’s argument that tariffs served as negotiation tools. The panel included judges appointed by Trump, Barack Obama, and Ronald Reagan.
The temporary legal win comes just weeks before Trump’s self-imposed 90-day pause on most reciprocal tariffs expires on July 9, after which tariff rates are expected to spike — with goods from the EU facing duties as high as 50%.
The case, V.O.S. Selections v. Trump, continues in the US Court of Appeals for the Federal Circuit.