A federal appellate court issued a stay Tuesday night freezing a lower court’s ruling that had invalidated most of President Trump’s tariffs.
Why it matters: The ruling preserves, for now, Trump’s sweeping efforts to reorder international trade, but will also prolong the uncertainty over their impact.
Catch up quick: The Court of International Trade ruled May 28 that Trump didn’t have the authority under the International Emergency Economic Powers Act to impose broad reciprocal tariffs, and ordered that the IEEPA levies be lifted.
A day later, the U.S. Court of Appeals for the Federal Circuit issued a temporary pause of that ruling while it considered motions to issue a longer-term stay.
Driving the news: The appellate court issued that stay Tuesday night, and ordered both sides to prepare for oral arguments on July 31.
A lower court’s decision that had declared the majority of President Trump’s tariffs unconstitutional was stayed Tuesday night by a federal appellate court.
Why it matters: Although the decision will extend the uncertainty surrounding the effects of Trump’s extensive attempts to restructure global trade, it also protects them for the time being.
In a nutshell, the Court of International Trade declared on May 28 that Trump lacked the jurisdiction to impose broad reciprocal tariffs under the International Emergency Economic Powers Act and ordered the removal of the IEEPA levies.
After a day, the U. S. . As it reviewed motions to grant a longer-term stay, the Court of Appeals for the Federal Circuit temporarily halted that decision.
Making the news: The appellate court ordered both parties to get ready for oral arguments on July 31 and granted that stay on Tuesday night.
Zoom out: While further legal action is taken, Trump’s global baseline tariff of 10 percent and additional levies on China and other countries will continue to be in effect.
Before the court hearing, some of those levies would re-enter force because they were paused in early April and are scheduled to expire in early July.
The mystery: Minutes after U, the stay was over. S. . A “framework” for the full implementation of a deal reached in Geneva last month was announced by trade negotiators in London.
Theoretically, the agreement would ease the flow of rare earth minerals from China, which has grown to be one of the main points of contention between the two biggest economies in the world.
Note from the editor: This is an evolving story. Please return for more information.
