The Court of Appeals upholds Trump's tariffs, suspended hours earlier by another court.

BarcelonaA US trade court on Thursday blocked the implementation of many of the tariffs pushed by Donald Trump. The ruling asserted that the president had exceeded his authority by imposing widespread tariffs on imports from trading partners. Specifically, the ruling stated that the US Constitution grants Congress exclusive authority to regulate trade with other countries and that, therefore, Trump does not have the power to implement the new tariffs. However, the White House filed an appeal with a higher court, the Court of Appeals, which on Thursday night decided to maintain the import tariffs until it rules on the merits of the dispute.

Initially, the New York-based Court of International Trade ordered a halt to the 30% tariffs on China, the 25% tariffs on some goods from Mexico and Canada, and the 10% global tariffs that were also being applied to products from the European Union. "The court does not rule on the prudence or likely effectiveness of using tariffs as a leverage tool. [...] This use is impermissible not because it is reckless or ineffective, but because [federal law] does not permit it," the ruling states. In that context, the judges ordered the administration to issue a reversal of the order within the next ten days.

However, the White House filed an appeal challenging the authority of the New York court. After reviewing this appeal, the Court of Appeals decided to maintain, for the time being, the trade tariffs as approved by the government and to overturn its ban.

The director of the White House National Economic Council, Kevin Hassett, expressed confidence yesterday that the judicial blockade of the tariff policy imposed by US President Donald Trump will eventually be overturned. "The idea that the fentanyl crisis in the US is not an emergency is so appalling to me that I am confident that when we appeal, this decision will be overturned," he said in an interview with Fox Business.

The White House called the Trade Court's decision "flagrantly wrong" and indicated that it could seek an immediate stay of enforcement from the Supreme Court. "Absent injunctive relief from this Court [the Trade Court], the United States plans to seek injunctive relief from the Supreme Court tomorrow to prevent the irreparable harm to national security and the economy that are at stake," it said in a press release, although for now the federal government will not have to go all the way to the nation's highest court thanks to the Trade Court's decision.

The Trade Court had invalidated, with immediate effect, all tariffs that originated from the International Emergency Economic Powers Act (IEEPA), designed to address "unusual and extraordinary" threats during a national emergency. Among the tariffs it invalidated were reciprocal tariffs and those on the wine sector. However, the court had not been asked to address other tariffs, such as the 25% tariffs on the auto, steel, and aluminum industries, which Trump issued using a different law. The court had essentially struck down the tariffs that Trump, from the White House lawn, announced, blackboard in hand, on April 2, which he dubbed "Liberation Day." The now-voided ruling was written by three judges appointed by former Presidents Ronald Reagan, Barack Obama, and Trump himself during his first term following a lawsuit by the Liberty Justice Center representing five companies that claimed they had been severely harmed by the tariffs.

The White House maintains that US trade deficits with other countries "have created a national emergency that has decimated American communities," according to a spokesperson. "It is not for unelected judges to decide how to properly address a national emergency. President Trump pledged to put America first, and the administration is committed to using the full resources of the executive branch to address this crisis and restore American greatness," he added in a statement.

Negotiations with the EU

This legal battle over trade tariffs comes the same week that the US president and European Commission President Ursula von der Leyen agreed to continue negotiating the tariff issue until July 9. After announcing the large battery of tariffs, Trump himself reversed himself and proclaimed a 90-day pause on the so-called reciprocal tariffs, despite maintaining the general 10% tariff.

During this period, still in effect, Brussels, through Trade Commissioner Maroš Šefčovič, has held meetings with US Trade Representatives, so far without success. In fact, the US president even threatened the EU with imposing a 50% tariff on all its products because the talks with Brussels were "going nowhere." Days later, a call between Trump and von der Leyen rectified the situation. If negotiations fail, the Commission has a battery of tariffs ready on US goods worth €95 billion.