US court rules in favor of Trump's tariffs amid legal challenges

A US appellate court has ruled that President Donald Trump can continue imposing tariffs on imported goods, overturning a decision made just one day earlier by a local court that deemed these tariffs illegal. The initial ruling had stated that Trump's imposition of the tariffs violated his presidential powers.

On Wednesday, the US Court of International Trade's decision enraged Trump administration officials, who labeled the ruling as an example of judicial overreach. The court’s decision had blocked Trump's tariffs on goods from various countries, including China, Mexico, and Canada, which were implemented as part of his broader trade agenda.

A federal appeals court granted a request from the White House to temporarily suspend the lower court's order, allowing Trump's tariffs to remain in effect for the time being.

Trump's tariff measures, which have shaken the global economy, were challenged by small businesses and several state governments. The administration argued in its appeal that the ruling by the Court of International Trade was based on unjustified assumptions about the president's actions and jeopardized months of trade negotiations.

The White House stated in its appeal that "foreign policy and economic decisions are made by political branches, not the judiciary." On Thursday, shortly before the appellate court's decision, White House spokesperson Carolyn Levitt said during a press briefing that the imposition of tariffs could be hindered if "activist judges" obstruct diplomatic or trade discussions.

In a social media post on Thursday, President Trump sharply criticized the ruling, stating, "I expect the Supreme Court will swiftly and effectively reverse this disastrous decision, which threatens our nation."

The lower court's ruling had canceled the tariffs that Trump imposed on goods from China, Mexico, and Canada in February. Trump justified these tariffs by arguing they were part of an effort to combat fentanyl drug smuggling. Last month, Trump had also imposed a 10% tariff on imports from other countries, including the European Union and China, which would have been canceled under the lower court's decision.

The lower court had cited the International Emergency Economic Powers Act of 1977, which the Trump administration had used to impose tariffs but found that this law did not allow such wide-ranging tariffs.

However, the court's ruling did not affect Trump's tariffs on steel, aluminum, and cars, which were implemented under a different legal framework.

Despite this, ongoing trade negotiations with various countries have led the White House to temporarily suspend or revise some of its tariff policies.

The appellate court's decision means that the Trump administration can continue imposing tariffs while the case remains under litigation. The next hearing is scheduled for June 5.

In a related ruling, another federal court also agreed with the appellate decision, though Judge Rudolf Contreras acknowledged that the issue of tariffs exceeds presidential authority, but the ruling applied only to a specific case involving a toy company.