A federal appeals court lifted the first of two rulings blocking President Trump’s tariffs on Thursday, giving him a temporary victory after a lower court rejected the administration’s legal defense hours earlier.
Many of Trump’s tariffs are still blocked by a separate ruling issued by a federal judge in Washington, D.C., though the judge gave the administration two weeks to appeal before they go into effect.
However, the new ruling by the United States Court of Appeals for the Federal Circuit lifts the initial block imposed Wednesday evening by a New York-based court that handles trade disputes.
“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,” the revised order reads.
The appeals court also set a briefing schedule until June 9 for the parties to present their arguments. The court will then decide whether to allow a longer pause.
Since taking office, Trump has attempted to impose tariffs on almost all of the United States’ trading partners, causing financial markets to panic as he repeatedly delayed or adjusted the announcements.
Stocks opened higher on Thursday after tariffs were blocked and Nvidia reported higher-than-expected revenue.
The lawsuits are about Trump’s attempt to impose many of the tariffs by using the International Emergency Economic Powers Act of 1977 (IEEPA), which allows the president to impose necessary economic sanctions during an emergency to combat a “unusual and extraordinary threat.”
Trump has attempted to use the law by citing trade deficits with other countries and an influx of fentanyl crossing the border.
Democratic-led states and small businesses have filed a series of legal challenges, arguing that the statute gives Trump no unilateral authority to impose tariffs, even if they are justified emergencies.
Jeffrey Schwab, senior counsel at Liberty Justice Center, which represents one group of plaintiffs, described the appeals court ruling as a “procedural step.”
“We are confident that the Federal Circuit will deny the government’s motion shortly thereafter, recognizing the irreparable harm these tariffs cause to our clients.” This harm includes the loss of critical suppliers and customers, forced and costly changes to established supply chains, and, most importantly, a direct threat to the businesses’ survival,” Schwab said in a statement.
On Wednesday night, the U.S. Court of International Trade rejected Trump’s efforts for the first time, permanently blocking his “Liberation Day” tariffs, as well as those imposed on China, Mexico, and Canada.
A similar ruling was issued on Thursday by a federal judge in Washington, D.C., and it remains in effect. The administration has also appealed that decision, but it will be heard by a separate court, which has yet to rule.
Neither case has an impact on some of Trump’s other tariffs, which are imposed under separate legal authorities, including those targeting specific products like steel, aluminum, and cars.
Administration officials have blasted the judges who have blocked Trump’s tariffs, accusing them of interfering with presidential authority.
“Three judges from the United States Court of International Trade disagreed and brazenly abused their judicial power to usurp President Trump’s authority to prevent him from carrying out the mandate that the American people gave him,” White House press secretary Karoline Leavitt said at a press briefing Thursday.