What’s the Story?
A day after a trade court struck down President Trump’s reciprocal tariffs and related duties, a federal appeals court stepped in on Thursday. The U.S. Court of Appeals for the Federal Circuit granted the administration’s request to temporarily stay the trade court’s ruling, effectively putting the tariffs back in place while the case moves forward.
Why It Matters
The original judgment from the U.S. Court of International Trade ruled that the International Emergency Economic Powers Act doesn’t grant "unbounded authority" to impose such sweeping tariffs. By pausing that decision, the appeals court has given the administration breathing room to maintain tariffs on a range of imports issued in early April.
Key Takeaways
- Tariffs Impact: These duties affect goods imported into the U.S. in retaliation for foreign trade barriers, with ripple effects on global supply chains.
- Legal Fight: Both sides are gearing up for a full appeal. The Supreme Court could ultimately decide if the president’s trade powers under IEEPA are limitless.
- Business Effects: Two educational toy companies, Learning Resources Inc. and hand2mind Inc., landed a separate injunction blocking tariff collection, although it’s stayed for 14 days.
Next Steps
With the appeals court holding off the lower court’s block, stakeholders—from manufacturers to retailers—are watching closely. The administration has asked for “interim relief” while the appellate judges review filings. Meanwhile, a preliminary order in Washington, D.C., underscores the complex patchwork of rulings shaping U.S. trade policy.
Reference(s):
cgtn.com
