FX.co ★ Trump’s Tariffs Stay in Place as Appeals Continue

A U.S. federal appeals court has upheld President Trump's extensive "Liberation Day" tariffs, permitting them to stay in effect pending a review of a lower court's decision that had previously blocked them. The lower court had determined that Trump exceeded his authorized powers. These tariffs impact most of the United States' trading partners, including Canada and China. While the appeals court has not yet decided on the tariffs' compliance with the International Emergency Economic Powers Act (IEEPA), it has temporarily nullified the lower court's injunction. On May 28, the U.S. Court of International Trade ruled that only Congress possesses the authority to levy tariffs and asserted that Trump misapplied IEEPA, a statute traditionally employed for sanctioning foreign threats. Trump, being the first president to utilize IEEPA for imposing tariffs, defended them as necessary countermeasures against fentanyl trafficking and trade imbalances. The legal suits, initiated by small businesses and 12 states, constitute just a fraction of at least five legal challenges, none of which have so far validated Trump's claim to emergency tariff powers.