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Appeals Court Temporarily Reinstates Trump’s Tariff Powers Amid Legal Battle

Photo: REUTERS/Brian Snyder
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A federal appeals court has temporarily paused a ruling from the U.S. Court of International Trade (CIT) that blocked President Donald Trump’s authority to impose tariffs, reigniting a legal fight over one of his signature economic policies.

The U.S. Court of Appeals for the Federal Circuit issued the stay less than 24 hours after the CIT declared Trump lacked the authority under the International Emergency Economic Powers Act to enact broad tariffs. The appeals court’s decision restores, for now, Trump’s ability to levy tariffs under emergency powers declared earlier this year.

In its order, the appeals court also instructed both parties to file written arguments by early next month on whether Trump’s tariffs should remain blocked.

The legal uncertainty has further clouded the future of the tariffs, which have been central to Trump’s economic agenda but have also sparked concerns about potential price hikes for consumers and small businesses.

In a post on Truth Social Thursday evening, Trump sharply criticized the CIT’s ruling and urged the U.S. Supreme Court to intervene.

“The U.S. Court of International Trade incredibly ruled against the United States of America on desperately needed Tariffs but, fortunately, the full 11 Judge Panel on the U.S. Court of Appeals for the Federal Circuit Court has just stayed the order by the Manhattan-based Court of International Trade. Where do these initial three Judges come from? How is it possible for them to have potentially done such damage to the United States of America? Is it purely a hatred of ‘TRUMP?’ What other reason could it be?” Trump wrote.

“Hopefully, the Supreme Court will reverse this horrible, Country threatening decision, QUICKLY and DECISIVELY. Backroom ‘hustlers’ must not be allowed to destroy our Nation!” he added.

Trump’s former top trade adviser Peter Navarro said the administration was expecting the stay and is exploring all strategic options.

“We will hear, within the next day or two, at a minimum, from the United States Trade Representative on how we will respond to all of this. We will respond forcefully, and we think we have a very good case with respect to this,” Navarro told reporters.

He also noted the administration is considering alternative legal tools to continue implementing tariffs.

“I can assure the American people that the Trump tariff agenda is alive, well, healthy and will be implemented to protect you, to save your jobs and your factories and to stop shipping foreign wealth, our wealth, into foreign hands,” Navarro said.

Meanwhile, the Liberty Justice Center — representing several companies challenging the tariffs — acknowledged the stay but emphasized it is only temporary.

“The decision by the appeals court is merely a procedural step as the court considers the government’s request for a longer stay pending appeal,” said Jeffrey Schwab, senior counsel at the Liberty Justice Center. “We are confident the Federal Circuit will ultimately deny the government’s motion shortly thereafter, recognizing the irreparable harm these tariffs inflict on our clients.”

The case now moves forward as both sides prepare for the next stage in what is shaping up to be a significant test of presidential power over economic policy.