A US appeals court temporarily reinstated the Trump administration’s reciprocal tariffs yesterday while it reviews a lower court ruling blocking the new import levies.
The latest action comes a day after the US Court of International Trade ordered the administration to stop most of its new levies, including a 10% baseline import tariff, on nearly all US trading partners within 10 days. The ruling argued President Donald Trump exceeded his authority by using a 1977 emergency powers law to impose tariffs. Trump has used the tariffs to lure manufacturing back to the US, potentially reduce federal deficits, and gain leverage to negotiate more favorable trade deals. The federal court decision is now stayed through June 9, when the appeals court will hear arguments in the case. The tariffs, however, remain blocked for two small Illinois-based toy importers under a separate ruling issued by a federal judge in Washington, DC. Analysts say the legal back-and-forth has introduced uncertainty into US trade policy, potentially impacting ongoing negotiations.
