The sudden reversal of a court ruling has sparked renewed debate over President Donald Trump’s tariffs.
According to ABC News, the tariffs were initially blocked by a court order on Wednesday but were unexpectedly reinstated Thursday after a federal appeals court intervened.
The U.S. Court of Appeals for the Federal Circuit issued an administrative stay, halting the previous decision while Trump’s appeal is under review.
Meanwhile, the administration, anticipating potential consequences, had urged the New York-based Court of International Trade to reconsider its ruling. Officials warned that enforcing the decision could trigger a “foreign policy disaster scenario,” adding further tension to the unfolding legal battle.
On Wednesday, a three-judge panel struck down Trump’s global tariffs, ruling that they were “contrary to law.” The judges found that the International Emergency Economic Powers Act (IEEPA), which Trump cited as justification, does not grant him unrestricted power to impose tariffs. They stated that the president’s tariff authority is “unbounded” in this case and exceeds what is legally permissible under IEEPA.
The judges emphasized that Congress, rather than the president, has the authority to impose tariffs in most circumstances. They also noted that Trump’s tariffs did not meet the legal threshold of an “unusual and extraordinary threat” that would justify unilateral action.
Trump responded swiftly on his social media platform, condemning the court’s decision. He questioned the legitimacy of the three judges and speculated about possible political motivations behind the ruling. He also expressed hope that the Supreme Court would overturn the “horrible, Country-threatening decision.”
A second federal court reinforced this legal challenge on Thursday, also declaring Trump’s tariffs unlawful.
U.S. District Judge Rudolph Contreras ruled that IEEPA does not grant the president the power to impose most of his recent tariffs. However, this ruling only applies to two companies — Learning Resources, Inc. and hand2mind, Inc. — that filed the lawsuit.
In reaction to the court decisions, the Department of Justice requested a stay, arguing that blocking Trump’s tariffs could harm national security and foreign policy. Administration officials warned that the court’s actions could weaken U.S. leverage in trade negotiations and endanger existing agreements.
The White House defended Trump’s tariff policies, with spokesperson Kush Desai asserting that “unelected judges” should not dictate how to handle national emergencies. He affirmed the administration’s commitment to using “every lever of executive power” to address economic challenges.
The Trump administration quickly filed an appeal, escalating the case to the U.S. Court of Appeals for the Federal Circuit. The decision was part of two separate lawsuits — one brought by small businesses and another filed by Democratic attorneys general.
The president further posted to Truth Social Wednesday about the tariffs being reinstated.
“A Federal Appeals Court has just ruled that the United States can use TARIFFS to protect itself against other countries. A great and important win for the U.S.,” Trump said.
