Federal Appeals Court Reinstates Trump’s Tariffs

Federal Appeals Court Reinstates Trump’s Tariffs

A federal appeals court temporarily reinstated President Trump’s tariffs on Thursday.

The Court of International Trade in New York ruled that President Trump exceeded his authority to impose tariffs under the International Emergency Economic Powers Act of 1977 (IEEPA).

The Trump Administration appealed the federal court’s permanent injunction on Wednesday evening.

The En Banc order, involving the court’s entire slate of judges, granted an immediate administrative stay less than 24 hours after the appeal.

One judge did not participate in the En Banc order.

The federal circuit court stated that the judgments and permanent injunctions from the Court of International Trade were temporarily stayed until further notice while the court considers the motions papers.

The federal court’s Wednesday injunction halted Trump’s 30% tariffs on China, 25% tariffs on some goods from Mexico and Canada, and 10% universal tariffs on most goods entering the United States.

The injunction did not affect 25% tariffs on autos, auto parts, steel, or aluminum, which were imposed under Section 232 of the Trade Expansion Act.

US District Court Judge T. Kent Wetherell suggested last week that President Trump had the authority to impose tariffs under IEEPA, citing a 1970s ruling.

Judge Wetherell did not issue an order but transferred one of the lawsuits to the Court of International Trade in New York.

A three-judge panel at the US Court of International Trade, consisting of Gary Katzmann (Obama appointee), Timothy Reif (Trump appointee), and Jane Restani (Reagan appointee), ruled on Wednesday that Trump exceeded his authority to impose tariffs under IEEPA.

In a separate federal court on Thursday, an Obama-appointed judge ruled Trump’s tariffs unlawful.

Judge Wetherell stated that IEEPA allows Trump to set tariffs for reasons other than raising revenue, such as stemming the flow of illicit drugs and resolving trade imbalances, satisfying the terms set by Congress.