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- A federal appeals court has ruled that President Trump’s tariffs will remain in effect during the appeal process, temporarily reversing a lower court’s decision.
- The decision applies to broad-based tariffs affecting most U.S. trading partners, as well as duties on imports from Canada, China, and Mexico.
- The court has not yet ruled on the legality of Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs, but will hear arguments on July 31.
- A lower court previously ruled that Trump had overstepped his authority, stating that the Constitution grants Congress the power to impose taxes and tariffs.
- The tariffs have created turbulence for global markets and American businesses, but the ruling does not impact tariffs implemented under separate legal frameworks, such as those on steel and aluminum.
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