Trump’s tariffs to remain in effect after appeals court grants stay

Washington, D.C., May 30, 2025 — A federal appeals court has temporarily reinstated former President Donald Trump’s controversial “Liberation Day” tariffs, just a day after a U.S. trade court ruled they were unconstitutional and ordered them blocked.

The U.S. Court of Appeals for the Federal Circuit issued a stay on Thursday, halting the lower court's ruling while it considers the Biden administration’s appeal. Plaintiffs in the case must respond by June 5, with the administration’s reply due June 9.

On Wednesday, the U.S. Court of International Trade declared that Trump had exceeded his authority by imposing tariffs under the International Emergency Economic Powers Act (IEEPA)—a law intended for national emergencies. The court argued that only Congress has the constitutional power to levy tariffs.

The blocked tariffs targeted a wide range of imports from U.S. trading partners, including Canada, Mexico, and China. Trump had claimed the tariffs were necessary to combat the flow of fentanyl into the U.S., which he accused the three countries of facilitating.

Trump responded to the ruling with sharp criticism, calling it a threat to presidential authority. “If allowed to stand, this would completely destroy Presidential Power,” he wrote on social media, urging the U.S. Supreme Court to overturn what he called a “horrible, country-threatening decision.”

Despite the legal setback, senior administration officials indicated confidence that the tariffs would ultimately survive either through the appeals process or alternative executive actions.

The Liberty Justice Center, which represents five small businesses challenging the tariffs, called the appeals court’s stay a routine procedural step. Their senior counsel, Jeffrey Schwab, warned that the tariffs threaten the survival of small businesses due to supply chain disruptions and increased costs.

Meanwhile, global reactions remained cautious. The British government referred to the ruling as an internal U.S. matter, while Canadian Prime Minister Mark Carney said it aligned with Canada's long-held view that the tariffs were unlawful. The European Commission declined to comment.

The trade court’s ruling had signaled a possible drop in the effective U.S. tariff rate to around 6%. But with the appellate stay in place, rates will remain at roughly 15%, as they have since Trump reimposed tariffs earlier this month following a brief pause.

Analysts warn that the uncertainty surrounding the legal battle may undermine Trump’s ability to secure new bilateral trade deals. So far, only a limited agreement with the United Kingdom has been reached.

Trump's tariff strategy has roiled global markets and strained multinational supply chains. Several major companies—including General Motors, Ford, Diageo, and foreign firms like Honda and Novartis—have adjusted forecasts or considered relocating operations to offset rising costs.

As legal and political battles continue, the fate of the tariffs—and the future of presidential trade authority—remains uncertain.