The bombshell Trump tariff ruling is now on hold
Image: Mark Schiefelbein/AP
Yesterday afternoon, a federal appeals court temporarily paused a ruling, handed down by the Court of International Trade one day earlier, that had declared most of President Trump’s tariff plans to be illegal.
- The appeals court’s decision prevents Wednesday’s tariff ruling from taking effect until judges can hear further legal arguments.
- The group of companies and states challenging Trump’s tariffs is required to file a written brief by June 5, while the Trump admin has until June 9 to respond.
How we got here
On Wednesday evening, a three-judge panel of the Court of International Trade—made up of Reagan, Obama, and Trump appointees—unanimously ruled that Trump lacks the authority to impose sweeping tariffs under the 1970s-era emergency legislation he invoked for many executive orders, since America’s trade deficit doesn’t fit the law’s definition of an “unusual and extraordinary threat.”
- The ruling effectively blocked Trump’s reciprocal tariffs of at least 10% on virtually all US trade partners, along with the White House’s 20% tariff on Canada, Mexico, and China for their alleged role in the US fentanyl crisis.
Not all tariffs were affected. Duties imposed by the Trump admin under a different legal authority called Section 232—including 25% tariffs on automotive, steel, and aluminum imports—weren’t covered under Wednesday’s ruling. US tariffs on China imposed during Trump’s first term and expanded by the Biden admin were also unaffected.
Bottom line: Legal and policy experts say the global trade war is far from over. Even if the Court of International Trade’s ruling is upheld on appeal, the Trump admin is still widely expected to pursue other legal avenues for imposing tariffs—though they don’t confer the broad power to place levies on all goods, like most current policies.
📊 Flash poll (long-form): What are your thoughts on the current situation regarding the Trump administration’s tariff plans? The most thoughtful answers will be featured in Monday’s newsletter.
See a 360° view of what pundits are saying →
Sprinkles from the Left
- Some commentators argue that courts are right to rule that Trump’s sweeping tariff plan is illegal, since the Constitution clearly states that Congress has the power to impose tariffs and the president doesn’t.
- Others contend that liberals shouldn’t get too excited by the court’s pause on Trump’s tariff agenda, since one result of the decision—if it holds up—could be to reign in the administrative state that’s been useful in enacting more progressive policies.
- “The Tariffs Are Illegal” –Matt Levine, Bloomberg
- “The tariff ruling is Trump’s biggest judicial setback” –Jason Willick, WaPo
- “Trump’s tariffs: the courts have drawn a line. So must Congress” –The Guardian Editorial Board
Sprinkles from the Right
- Some commentators argue that the court was right to pause Trump’s tariff plans, since the case to remake current US trade policies should be argued before Congress—not made by unilateral presidential declaration of open-ended worldwide “emergencies.”
- Others contend that conservatives ought to cheer on the ruling pausing Trump’s tariff plan, which was enacted largely at the whims of one man, and that Trump should heed the trade court’s ruling and liberate the economy from his destructive tariff obsessions.
- “The Tariff Power Properly Belongs with Congress” –National Review Editorial Board
- “President Trump Isn’t a Tariff King” –WSJ Editorial Board
- “White House should take court setback as a chance for a reset on tariffs” –NY Post Editorial Board
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