The U.S. Court of Appeals for the Federal Circuit has determined that tariffs imposed by the Trump administration can remain active as the court reviews a prior decision that initially invalidated them. This development stems from an original ruling by the U.S. Court of International Trade, which concluded that the International Emergency Economic Powers Act (IEEPA) of 1977 does not authorize the President to levy indiscriminate tariffs on goods from practically all countries globally.
Driven by a lawsuit from the Liberty Justice Center on behalf of affected businesses, the complaint underscored significant economic harm following the enactment of the tariffs, which included a 10 percent tariff on all nations and enhanced duties on countries with prominent U.S. trade deficits. A particular focus has been the tariff on Chinese goods, elevated to 145 percent by April 2025, with forecasts suggesting potential adverse impacts on GDP and wages.
The lower trade court’s decision, issued weeks prior, had blocked the majority of these tariffs, contending that President Trump’s broad definition of a national emergency — which included non-economic threats such as drugs and crime — was an overextension. The judgment was grounded on the National Emergencies Act and embraced the principles of the non-delegation and major questions doctrines, asserting that the tariffs exceeded presidential authority. The non-delegation doctrine restricts Congress from freely ceding legislative power, while the major questions doctrine curtails significant economic actions without explicit congressional consent.
In its latest move, the Federal Circuit Court has agreed to stay the trade court’s decision, ensuring the continuance of the tariffs as the appeal is examined. Oral arguments regarding this issue are slated for July 31, setting the stage for further judicial scrutiny.
For further information, visit the JURIST report.