Trump’s tariff policy has been put on hold by the appellate court, and the controversy over imposing additional tariffs has escalated again
The afterglow of the ruling by the US Court of International Trade is still lingering, but the tariff policy of the Trump administration has taken a dramatic turn! The US Court of Appeals for the Federal Circuit made a crucial ruling on the 29th local time, temporarily suspending the executive order previously issued by the lower court that prohibited the government from implementing additional tariffs on multiple countries. This decision instantly pushed the fierce legal battle over tariff powers to a new climax.
Policy reversal within 24 hours
On April 2nd, the Trump administration, citing the International Emergency Economic Powers Act (IEEPA), announced the imposition of a series of tariffs on multiple countries, citing reasons related to national security and economic competition.
On May 28th, the Court of International Trade in New York dealt a heavy blow to the ruling that the suspension of the Trump administration’s package of tariff hikes would take effect, posing a major challenge to the government’s power.
On May 29th, the appellate court intervened urgently. In response to the prompt request from the Department of Justice, the Federal Circuit Court of Appeals approved the suspension of the injunction issued by the International Trade Court, buying precious time for the government. The court also ordered both parties to the lawsuit to submit detailed written arguments on the core issue of preventing the imposition of tariffs in early June, paving the way for the next ruling.
The US Department of Justice was tough in its emergency request, stating that if the injunction of the International Trade Court takes effect, it will avoid direct and irreparable damage to US foreign policy and national security. This statement highlights the government’s core defense logic of placing tariff policies within the framework of national security, emphasizing the president’s extensive authority to deal with unusual threats under the IEEPA.
The plaintiffs who challenged the policy of imposing additional tariffs were confrontational. They generally question whether it is legal and appropriate for the government to use the IEEPA law, which is used to deal with national emergencies, to impose tariffs. They believe that this move seriously oversteps its authority, misuses trade policy tools as economic pressure means, and bypasses the normal legislative process of Congress.
This high-level judicial game has plunged American importers, manufacturers and retailers that rely on the global supply chain into deep anxiety. “We are like sitting on a time bomb,” said a small manufacturing entrepreneur who preferred to remain anonymous. “Each round of court ruling could mean costs soar or fall overnight.” This extreme uncertainty in itself is a huge business risk, forcing us to postpone investment and recruitment. The National Retail Federation has also repeatedly warned that the widespread imposition of tariffs will eventually be paid for by American businesses and consumers, pushing up inflation.
With the Federal Circuit Court of Appeals setting the deadline for the written debate in early June, the two sides of the lawsuit will engage in a more in-depth battle around the core legal issues:
Does the IEEPA grant the president such extensive unilateral power to impose tariffs? Does invoking this act to handle regular trade disputes constitute abuse?
Is the basis for the state of emergency claimed by the government sufficient and legal?
Did the policy-making process follow the necessary legal procedures?
After reviewing the detailed arguments submitted by both sides, the court will decide whether to maintain the suspension status, completely overturn the injunction of the International Trade Court, allow the injunction to come into effect again, or arrange for further oral arguments. The ultimate outcome of this case not only affects the survival or abolition of the Trump administration’s current round of tariff policies, but also may set key judicial boundaries for the future president to exercise economic power.
The intervention of the Federal Circuit Court of Appeals is by no means the end; rather, it is a key midpoint in this legal battle involving tens of billions of dollars in trade costs, the boundaries of the president’s power and the country’s economic interests. The government holds high the shield of national security, while opponents hold tightly the spears of legal procedures and checks and balances of power. When the legal arguments of both sides are submitted intensively in early June, the deep-seated rules of the US international trade policy may be reshaped.
As this judicial tug-of-war continues, both global supply chains and domestic US enterprises are holding their breath for the next court document, which could directly rewrite their cost books and future plans. The outcome of this tariff dispute is bound to touch the nerves of countless enterprises.
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