In a significant development for former President Donald Trump’s trade legacy, a US federal appeals court has temporarily blocked a lower court ruling that would have dismantled his controversial tariff program. The decision allows the continuation of tariffs imposed under Trump’s use of emergency powers, while a full legal review proceeds.
The Court of Appeals for the Federal Circuit in Washington granted an emergency stay on Thursday, siding with Trump’s legal team, which argued that lifting the tariffs could harm national security. The tariffs, branded as part of Trump’s “Liberation Day” initiative, targeted imports from nearly every nation, citing threats to the US economy.
Just a day prior, the US Court of International Trade had ruled that Trump exceeded his authority by invoking the 1977 International Emergency Economic Powers Act (IEEPA) to justify the sweeping tariffs. The panel of three judges concluded that the declaration of a national emergency for trade purposes was a misuse of executive powers — marking a major legal setback for Trump’s trade strategy.
Markets initially responded positively to the lower court’s ruling, with gains seen in the S&P 500 and Nasdaq, and tech giants like Nvidia rising. However, Thursday’s appeals court decision has reignited uncertainty about long-term trade policy under Trump’s influence.
Reacting to the ruling, White House Trade Advisor Peter Navarro assured the public, “The Trump tariff agenda is alive, well, and ready to defend American jobs and industries.” He emphasized that the administration remains fully committed to protecting domestic manufacturing through tough trade measures.
Despite the temporary relief, concerns persist within the administration about the fate of the tariff policy. White House officials confirmed their intent to take the legal battle to the US Supreme Court, asserting that executive trade actions must remain shielded from judicial overreach.
Press Secretary Karoline Leavitt criticized the lower court’s judgment, calling it “ridiculous” and “dangerous for America’s sovereignty in trade negotiations.” She added, “The Supreme Court must resolve this to protect the balance of power and ensure the President can act decisively on international economic threats.”
If the Supreme Court challenge fails, officials hinted that Trump would consider reintroducing similar tariffs using alternative legal frameworks.
