Federal appeals court revives Trump's controversial tariffs temporarily

On May 29, 2025, a federal appeals court in the United States temporarily reinstated tariffs imposed by President Donald Trump after the U.S. Court of International Trade ruled that they were unlawful. This decision came after Judge Jeffrey Schwab, representing affected businesses, argued that the tariffs were inflicting irreparable harm and should be blocked. The temporary stay allows the tariffs to remain active while the appeals court reviews the case further. The situation revolves around Trump's use of the International Emergency Economic Powers Act, previously declared a legal overreach due to the lack of a true national emergency. The initial ruling from the U.S. Court of International Trade stated that Trump’s 10% reciprocal tariffs on imports from several nations, including China, Canada, and Mexico, exceeded the jurisdiction granted by the aforementioned Act. The court suggested that trade policies should be crafted by Congress rather than unilaterally imposed by the president, thus framing the tariffs as an overstep of authority. Following the ruling, the Trump administration swiftly appealed, seeking to avoid disruptions to ongoing trade negotiations and economic stability. In the wake of the appeals court's decision, stock markets reacted positively, with indices such as the Dow Jones Industrial Average and S&P 500 seeing gains. This illustrates the volatile relationship between judicial decisions regarding trade policies and investor sentiment. The administration’s continued push for tariffs, first enacted in a highly publicized ceremony dubbed “Liberation Day,” reflects ongoing tensions in international trade relations, particularly with countries like China and those involved in the fentanyl trade. As the legal proceedings unfold, the broader implications of these tariffs on U.S. businesses and consumers remain uncertain. Observers are closely monitoring how the legal status of these tariffs could alter trade negotiations and economic forecasts, especially in light of previous agreements that had aimed to reduce such tariffs and boost economic cooperation. The appeals court's timeframes for responses and further deliberations indicate that this issue will be a focal point in upcoming discussions within the trade policy landscape in the United States.