Photo: Alamy
A federal appeals court on Tuesday temporarily reinstated a series of tariffs imposed under President Donald Trump, halting a lower court decision that had invalidated much of the policy while the appeals process moves forward.
The stay, issued by a panel of judges, affects Trump’s broad 10 percent baseline tariff on global imports as well as tariffs levied on China and other nations. However, tariffs targeting specific sectors, such as aluminum and steel, remain unaffected by the decision.
“A Federal Appeals Court has just ruled that the United States can use TARIFFS to protect itself against other countries. A great and important win for the U.S.” Trump posted to Truth Social early Wednesday.
Last month, the U.S. Court of International Trade ruled that Trump exceeded his authority in issuing the so-called “Liberation Day” tariffs, prompting a challenge from the Biden administration seeking to preserve key portions of the previous administration’s trade measures.
In granting the stay, the appellate court said both parties presented compelling arguments. “Having considered the traditional stay factors, the court concludes a stay is warranted under the circumstances,” the judges wrote in the order.
The court also expedited proceedings in the case, scheduling oral arguments for July 31. The panel noted the significance of the case and called for an en banc review, meaning the full bench of judges will hear the appeal rather than a smaller panel.
“The court also concludes that these cases present issues of exceptional importance warranting expedited en banc consideration of the merits in the first instance,” the order stated.
The decision also follows Trump’s executive proclamation last week that raised tariffs on imported steel and aluminum from 25 to 50 percent, effective starting Wednesday.
“We started at 25 and then after studying the data more, realized that it was a big help, but more help is needed. And so that is why the 50 is starting tomorrow,” White House economic adviser Kevin Hassett said at a steel industry conference in Washington.
The new rates apply to all U.S. trading partners except the United Kingdom, the only nation to reach a preliminary trade agreement with the U.S. during a 90-day pause on broader tariffs. The U.K. will retain the 25 percent rate through at least July 9.
