Appeals Court Keeps Trump's Tariffs Going With Temporary Stay

On Wednesday, a federal appeals court approved a request from the Trump administration to keep the White House's elevated tariff levels in effect until after litigation plays out at the appellate level. The decision means that the administration's "Liberation Day" tariffs will still be charged to importers, at least for now. 

The temporary stay puts a hold on a ruling announced yesterday by the U.S. Court of International Trade. In that ruling, a three-judge panel found that the administration had no authority under the International Emergency Economic Powers Act (IEEPA) to impose tariff levels of its choice on an unlimited number of nations. IEEPA contains no mention of tariffs, but the administration had used this statute as the legal basis for its April 2 tariff announcement (and subsequent rate reductions and rate hikes). 

In its appeal, the administration said that the Court of International Trade's decision to vacate its sweeping high-rate tariffs would interfere with ongoing trade negotiations, removing the president's leverage to extract concessions. The temporary stay allows those negotiations to continue as before, though with added uncertainty: the appellate process is only just beginning, and it is as-yet unknown whether the administration will prevail or the Court of International Trade's decision will be affirmed. 

Even if it loses its appeal, the White House has alternatives. Under a separate statute, the Trade Act of 1974, the president has a clearly-defined emergency power to enact tariffs of up to 15 percent for up to 150 days. For steeper tariff rates or longer timetables, the White House could ask Congress to pass legislation to delegate more tax and tariff authority to the president, or to set a new tariff schedule into law.