Washington, May 30, 2025 – A federal appeals court allowed President Trump’s sweeping tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation after deeming the method used to enact them “unlawful.”
That means Trump’s tariff agenda remains intact, if in flux, in the latest twist in the unfolding legal saga.
Late Wednesday, the trade court voted to block many of Trump’s tariffs, including the flat-rate “reciprocal” tariffs aimed at US trade partners, as well as key China-focused duties. The decision left some levies intact, specifically those covering steel, aluminum, and certain Chinese goods.
The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration’s request for a temporary administrative stay.
This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps.
The White House had vowed Thursday to take its appeal to the Supreme Court if necessary.
Administration officials also hinted that court rulings would not be the final say for a president who has based much of his economic agenda on enacting the tariffs.
Yahoo Finance’s Ben Werschul has an overview of the other maneuvers Trump could pursue.
Amid the legal chaos, US trade negotiations have apparently continued in earnest this week, with an FT report on Wednesday saying India has offered the US steep tariff cuts but is seeking to retain high duties on some agricultural commodities.
India is not the only trading partner seeking a reprieve.
On Wednesday, the EU trade chief, Maroš Šefčovič, said the European Commission is discussing with the US possible cooperation in sectors such as semiconductors, steel, and aerospace.
Tariff concerns continue to weigh on corporate America.
Nvidia CEO Jensen Huang said the company plans to manufacture AI chips in the US, but also warned about export controls that limit its ability to ship products to China.
This follows Trump’s warning that Apple would face 25% tariffs if it failed to move iPhone production to the US.
Here are the latest updates as the policy reverberates around the world.
Trump tariffs to temporarily stay in effect
A federal appeals court has temporarily reinstated President Trump’s global tariffs by pausing a lower court ruling that had blocked them. The decision, which came sooner than expected, means the tariffs will remain in effect for now.
The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration’s request for a temporary administrative stay. This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps.
As Yahoo Finance legal reporter Alexis Keenan noted, Trump has broad authority to impose tariffs through various legal channels, including Sections 232 and 301.
The administration had chosen to justify the tariffs under an emergency act, citing concerns such as immigration and drug trafficking — an argument the lower court rejected.
Legal experts say it’s unclear how the appeals court will ultimately rule, as another court might interpret the emergency authority in a different way.
Trump tariff setback could hasten US debt ceiling deadline: Barclays
Analysts are raising concerns about how a new court ruling against President Trump’s tariffs could force the U.S. government to raise the debt ceiling.
Reuters reports:
A U.S. trade court blocked most of President Donald Trump’s tariffs in a sweeping ruling on Wednesday that found the president overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners.
The Trump administration filed a notice of appeal and questioned the authority of the court.
The U.S. government reached its statutory borrowing limit in January and began employing “extraordinary measures” to keep it from breaching the cap and risking a potential default.
“Additional tariff revenues were likely to push the x-date back and lack of those is likely to keep it around late August,” Barclays analysts said in a note on Thursday.
The so-called x-date is when the government will no longer be able to pay all its obligations.
“While the administration ultimately could pursue other avenues to achieve the same tariff rates, or it might prevail through the courts, that may not be resolved in short order so the x-date forecast remains quite in flux,” they said.
