U.S. Appeals Court Weighs Extended Pause on Ruling Against Trump Tariffs

The U.S. Department of Justice has asked the U.S. Court of Appeals for the Federal Circuit to extend its stay on a lower court’s decision that found most of President Donald Trump’s global tariffs illegal.

Trade Tariffs
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(Farm Journal/MGN)

The U.S. Department of Justice has asked the U.S. Court of Appeals for the Federal Circuit to extend its stay on a lower court’s decision that found most of President Donald Trump’s global tariffs illegal. The request, filed Monday, aims to keep the tariffs in place while the protracted legal fight over their legitimacy continues — a process that could take months and potentially reach the Supreme Court.

On May 28, a three-judge panel of the U.S. Court of International Trade (CIT) ruled that Trump exceeded his authority under the 1977 International Emergency Economic Powers Act (IEEPA) by imposing broad tariffs, including a 10% global levy and the April 2 “Liberation Day” tariffs. CIT concluded that IEEPA does not grant the president unlimited power to impose tariffs and that the tariffs did not directly address the emergencies cited as justification.

Other tariffs imposed under separate statutes — such as those on steel, aluminum, and automobiles — remain unaffected by these rulings.

In its latest filing, the Justice Department contends that lifting the tariffs would harm the president’s ability to conduct foreign policy and weaken America’s negotiating position in sensitive trade talks. The administration warned that removing the tariffs now would “catastrophically harm our economy,” embolden other countries to exploit U.S. vulnerability, and disrupt ongoing trade negotiations.

The government also pushed back against arguments from small businesses and Democratic-led states that alternative legal avenues exist for imposing tariffs. DOJ argued that such hypothetical alternatives would not address the urgent timing of current economic and diplomatic challenges: “The emergencies are looming now, negotiations are proceeding now, and the CIT’s injunction threatens them,” the government stated.

The Federal Circuit could rule at any time on whether to maintain the pause for the length of the appeals process, which is expected to last several months. Several related lawsuits have been put on hold pending this decision, though at least one case regarding a specific tariff exemption is moving forward in a lower court.

If the appeals court ultimately rules against the administration, the case is likely to proceed to the Supreme Court, with the outcome potentially reshaping the scope of presidential authority over U.S. trade policy.

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