Federal Appeals Court Temporarily Reinstates Trump Tariffs Amid Legal Battle

A federal trade court ruled that President Trump overstepped his authority by imposing sweeping tariffs under the 1977 International Emergency Economic Powers Act, invalidating his 'Liberation Day' tariffs designed to target multiple countries including Canada, Mexico, and China to address national security concerns such as the fentanyl flow. However, the U.S. Court of Appeals for the Federal Circuit temporarily stayed the lower court's injunction, allowing the tariffs to remain in effect while the administration appeals the decision. White House officials condemned the trade court's ruling as judicial overreach and filed an emergency appeal, emphasizing the importance of the tariffs for foreign policy, economic security, and ongoing trade negotiations. The legal battle has introduced significant uncertainty in global supply chains and markets, with notable impacts such as a sharp drop in cargo volumes at the Port of Los Angeles and cautious investor reactions. The appeals court granted deadlines for responses from plaintiffs and the government as the case progresses, with the final resolution likely headed to the Supreme Court. Despite the legal challenges, the Trump administration remains confident in defending the tariffs and exploring alternative methods to continue its trade agenda.