Trump administration prevails as appeals court pauses lower court decision blocking contested tariffs

President Trump’s tariffs will remain in effect for now after a federal appeals court ruled Tuesday to pause a lower court decision that had blocked them. 

The U.S. Court of Appeals for the Federal Circuit granted the stay and scheduled an expedited review of the case, which centers on whether Trump exceeded his authority under federal law.

The case involves challenges from five small businesses and a coalition of states who argue that President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs was unlawful. 

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The U.S. Court of International Trade sided with the plaintiffs earlier this year, issuing an order to block the tariffs. That decision is now on hold pending further review.

The Federal Circuit found that both sides raised substantial arguments and that a stay was appropriate under the legal standards used to evaluate such motions. 

The court’s brief order noted that the stay was necessary to preserve the status quo while the appeal proceeds. The case will now be heard by the full bench of active judges in an en banc session, a rare move reserved for matters of exceptional legal significance.

Oral arguments are scheduled for July 31 at 10:00 a.m. in Courtroom 201 at the Federal Circuit courthouse in Washington, D.C.

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The Liberty Justice Center, which represents the five businesses, criticized the court’s decision to allow the tariffs to remain temporarily but welcomed the accelerated review.

“We’re disappointed the federal circuit allowed the unlawful tariffs to remain in place temporarily,” said Jeffrey Schwab, Senior Counsel and Director of Litigation at the Liberty Justice Center. 

“It’s important to note that every court to rule on the merits so far has found these tariffs unlawful, and we have faith that this court will likewise see what is plain as day: that IEEPA does not allow the president to impose whatever tax he wants whenever he wants. We are glad the federal circuit recognized the importance of this case, and agreed to hear it before the full court on an expedited schedule.”

The full opinion can be read here.

White House spokesman Kush Desai defended the Trump administration’s executive powers in a statement to Fox News Digital, saying it welcomed the US Circuit Court of Appeals’ stay order.

“The Trump administration is legally using the powers granted to the executive branch by the Constitution and Congress to address our country’s national emergencies of persistent goods trade deficits and drug trafficking. The US Circuit Court of Appeals’ stay order is a welcome development, and we look forward to ultimately prevailing in court,” Desai said.