Appeals court halts lower court’s block, allowing controversial “Liberation Day” tariffs to remain as government prepares response.
May 30, 2025: A federal appeals court has temporarily reinstated President Donald Trump’s sweeping tariffs, just a day after a lower trade court had ruled the president overstepped his authority.
The United States Court of Appeals for the Federal Circuit in Washington paused the trade court’s ruling and set a tight timeline for responses: plaintiffs must file by June 5, and the administration by June 9.
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The lower court had found Trump’s so-called “Liberation Day” tariffs unconstitutional, arguing only Congress has the authority to impose such duties. Trump’s team has defended the tariffs as a crucial leverage in trade talks, particularly with China, Canada, and Mexico—countries he accuses of aiding fentanyl trafficking.
While Trump’s administration was undeterred and anticipated winning on appeal, the court’s move offers a temporary reprieve. Treasury Secretary Scott Bessent said key trade partners, including a large Japanese delegation visiting Friday, are still negotiating.
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The British government called the court’s ruling a “domestic matter,” and Germany declined to comment. Canadian Prime Minister Mark Carney welcomed the decision, reiterating Canada’s view that the tariffs are unlawful.
Financial markets responded with cautious optimism. Analysts warned that the final fate of the tariffs remains uncertain and could take months to resolve.
The nonprofit Liberty Justice Center, representing small businesses suing over the tariffs, called the stay a procedural step. “The appeals court will ultimately agree these tariffs harm American businesses,” said senior counsel Jeffrey Schwab.
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Other legal challenges continue, including a separate case limiting the relief to a single toy company.
Trump’s tariffs, originally set in early April, target nearly all US trading partners with baseline rates of 10%—and up to 25% on certain imports. Some product-specific tariffs on steel and cars remain untouched by the court decisions.
Trump’s trade war has already forced global companies like Honda, Campari, and Roche to reconsider supply chains, while US firms like Diageo, Ford, and GM have scrapped forecasts.
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Trump Tariffs, US Court of Appeals, Liberation Day tariffs, Trade War, US economy, Global trade, Tariff dispute, Mark Carney, US-China trade