The U.S. Court of Appeals for the Federal Circuit has permitted the federal government to continue collecting import tariffs introduced by former President Donald Trump, while litigation over the legality of those tariffs proceeds. The decision comes after a lower court ruled that Trump had exceeded his authority in imposing the duties.
On Tuesday, the appeals court extended its earlier stay of a May 28 decision by the U.S. Court of International Trade, which had found the tariffs unlawful. Noting the “issues of exceptional importance” raised by the case, the appellate court announced it would fast-track proceedings and scheduled oral arguments for July 31.
The litigation centers on a series of tariffs Trump enacted under emergency powers authorized by a 1977 statute. These included a 10% tariff on imports from nearly every country and higher tariffs aimed at nations with which the U.S. had trade deficits. Separate duties were also imposed on imports from China, Canada, and Mexico, with Trump citing efforts to curb illegal immigration and the flow of synthetic opioids as justification.
While the tariffs were seen as a cornerstone of Trump’s trade policy, they drew widespread criticism for disrupting global commerce, straining diplomatic ties, and unsettling financial markets. Businesses affected by the duties and legal scholars alike have questioned the broad use of presidential emergency powers in this context.
The appeals court’s decision to allow continued tariff collection preserves the status quo while the legal battle continues. A definitive ruling on the scope of presidential trade authority is now expected later this year.
