A federal appeals court has temporarily stayed the ruling that was handed down on Wednesday evening by a panel of judges of the US Court of International Trade (CIT), which blocked comprehensive tariffs Donald Trump.
The appeals court's ruling restored Trump's ability to impose tariffs, invoking the emergency powers he declared earlier this year.
The court also ordered that both sides submit written arguments on the suspension of Trump's tariffs, no later than early next month.
This decision introduces additional confusion and uncertainty regarding s Trump's tariff policy, which represents a key pillar of his economic policy, writes CNN.
Temporary suspension
A three-judge panel of the US Court of International Trade ruled on Wednesday (May 28th) that Trump did not have the authority to impose the sweeping tariffs, which he enacted by invoking the International Economic Emergency Powers Act (IEEPA).
Tariffs usually have to be approved by Congress, but Trump sidestepped that by arguing that the US trade deficit constitutes a national emergency. This allowed him to impose broad tariffs on most countries, which caused major upheavals in the markets.
The judges who temporarily suspended Trump's tariffs emphasized that they were not ruling on "the wisdom or possible effectiveness of the president's use of tariffs as a pressure tool."
Instead, the ruling was solely about whether the tariffs were lawfully imposed at all. Their application, as stated, is "impermissible not because it is reckless or ineffective, but because federal law does not allow it."
The Trump administration immediately appealed the ruling, setting off a legal battle over economic policies that Trump claims will return the US economy to manufacturing.
A temporary suspension of the verdict followed less than 24 hours later.
In a lengthy post on his Truth Social platform, Trump said Thursday night that the U.S. Court of International Trade's ruling undermines presidential authority. He also called on the Supreme Court to intervene and overturn the court's decision.
"A panel of judges of the U.S. Court of International Trade, incredibly, ruled against the United States on the issue of desperately needed tariffs, but fortunately, a full panel of 11 judges of the Court of Appeals just suspended the ruling of the New York court. Where did those three original judges come from? How could they have caused so much damage to the U.S.? Is it just hatred of Trump? What other reason could there be?" Trump wrote.
"I hope the Supreme Court will quickly and decisively reverse this terrible, country-threatening decision. The shadow crooks must not destroy our nation!", added the US president.
Verdict after verdict
The ruling suspending the tariffs, and then the second ruling temporarily suspending that decision, were made within less than 24 hours, which further adds to the chaos surrounding Trump's economic policy.
On Wednesday night, judges at the U.S. Court of International Trade blocked all tariffs imposed under the International Economic Emergency Powers Act, including the "Liberation Day tariffs" announced by Trump on April 2, as well as previously imposed tariffs against China, Mexico and Canada, which Trump argued were aimed at combating fentanyl entering the United States.
The order does not apply to the 25 percent tariffs on cars, auto parts, steel and aluminum, which were introduced under Article 232 of the Trade Expansion Act.
The court unanimously, in one decision, passed judgment in two different cases. One lawsuit was filed in April by Liberty Justice Center on behalf of wine importer VOS Selections and four other small businesses. The second lawsuit was filed by twelve US states, led by Oregon.
"This ruling confirms that our laws mean something and that trade decisions cannot be made at the whim of the president," Oregon Attorney General Dan Rayfield said after the ruling on the temporary suspension of tariffs. Prosecutors argued that the Emergency Powers Act does not give the president the right to impose tariffs, and even if he did, a trade deficit does not constitute an emergency because an emergency is defined as an "unusual and extraordinary threat."
The Trade Court also ordered the administration to withdraw the disputed tariffs within ten calendar days.
The Trump administration filed an appeal just hours after the decision. On Thursday, the administration threatened to take the case to the Supreme Court if the appeal is not upheld by the Court of Appeals or the US Court of International Trade itself.
At a press conference Thursday afternoon, White House spokeswoman Caroline Leavitt criticized the court's decision, calling the three-judge panel "activist judges," even though one of the judges was appointed by Trump himself during his first term.
Levitt said the decision was an attempt to "brazenly abuse judicial power to take away Trump's authority."
Sources: CNN/The Guardian
