BREAKING: Appeals Court Lets Tariffs Remain in Effect … For Now

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Will Donald Trump find a IEEPA sympathy with the appellate court on his Liberation Day tariffs? At the very least, the Federal Circuit Appellate Court has enough sympathy to stay the ruling from the Court of International Trade for a little while as the administration appeals the decision. For now, tariffs are back on the menu, boys:

A federal appeals court on Thursday granted the Trump administration’s request to temporarily pause a lower-court ruling that struck down most of President Donald Trump’s tariffs.

Don’t read too much into this action. The per curiam order will only remain in effect for a fortnight or so while both sides prepare motions in the consolidated appeal:

(1) The motions to consolidate are granted. The appeals are consolidated, such that only one set of briefs should be filed for the appeals. The revised official caption for the consolidated appeals is reflected in this order.

(2) The request for an immediate administrative stay is granted to the extent that the judgments and the permanent injunctions entered by the Court of International Trade in these cases are temporarily stayed until further notice while this court considers the motions papers.

(3) The parties are directed to immediately inform this court of any action taken by the Court of International Trade on the United States’s pending stay motions. 

(4) The plaintiffs-appellees are directed to respond to the United States’s motions for a stay no later than June 5, 2025. The United States may file a single, consolidated reply in support no later than June 9, 2025. 

That’s slightly less than two weeks. Presumably, the appellate court will rule on this matter relatively quickly, given that any tariffs in effect at the moment under the IEEPA would continue to damage the plaintiffs. Note well, though, that the stay here does not even mention ongoing damages or the likelihood of the government to prevail. It simply looks like deference to the executive while the matter remains under consideration, and not a signal about which way the court is likely to rule on the matter. 

Jonathan Turley anticipated the stay and the deference, but still believes that Trump will not win this case in the end:

While some have criticized the court as a “judicial coup,” it is a well-reasoned and good-faith decision from judges appointed by Presidents Ronald Reagan, Barack Obama, and Trump.

While the court, in my view, should have issued a stay pending appeal, a wide array of experts have questioned the authority under the IEEPA, which is designed to address a national emergency. The authority does not mention tariffs and has never been used for tariffs. There’s a good chance the Supreme Court upholds the ruling. … 

Trump was right about the market barriers and unfair treatment shown by other countries, including some of our closest allies. The resulting deals will be good for the United States and could represent the most significant move toward open markets in a generation.

These are difficult issues, and we need to tamp down the rhetoric. These judges are not the enemy. Neither is Trump. Trump is trying to use every possible law to achieve historic reforms. These judges are trying to guarantee that such priorities do not take precedence over the rule of law.

Again, the original ruling was well-reasoned and based on the law and precedent. That doesn’t mean Trump is wrong to push for his policies, nor to appeal that decision. But it does mean that this particular strategy may not hold up, and that means Trump needs to get ready for a strategy that will.