A federal appeals court lifted the first of two rulings blocking President Trump’s tariffs on Thursday, handing him a temporary win after a lower court rejected the administration’s legal defense hours earlier.
Many of Trump’s tariffs remain blocked under a separate ruling issued by a federal judge in Washington, D.C., though that judge gave the administration two weeks to appeal before it goes into effect.
But the new ruling by the U.S. Court of Appeals for the Federal Circuit lifts the initial block imposed Wednesday evening by a New York-based court that handles trade cases.
“The judgments and the permanent injunctions entered by the Court of International Trade in these cases are temporarily stayed until further notice while this court considers the motions papers,” the new order reads.
The appeals bench also set a briefing schedule through June 9 for the parties to lay out their arguments. The court will then rule whether to grant a longer pause.
Trump has sought to impose tariffs on almost all U.S. trading partners since taking office, creating whiplash in financial markets as he repeatedly delayed or adjusted the announcements.
Stocks opened higher Thursday in the wake of the tariffs being blocked and Nvidia reporting better-than-expected revenue.
The lawsuits concern Trump’s attempt to impose many of the tariffs by invoking the International Emergency Economic Powers Act of 1977 (IEEPA), which authorizes the president to impose necessary economic sanctions during an emergency to combat an “unusual and extraordinary threat.”
Trump has attempted to leverage the law by pointing to trade deficits with other countries and an influx of fentanyl coming across the border.
Democratic-led states and small businesses have filed a series of legal challenges, contending the statute provides Trump no unilateral authority to impose tariffs even if those are valid emergencies.
Jeffrey Schwab, senior counsel at Liberty Justice Center, which represents one group of plaintiffs, called the appeals court ruling a “procedural step.”
“We are confident the Federal Circuit will ultimately deny the government’s motion shortly thereafter, recognizing the irreparable harm these tariffs inflict on our clients. This harm includes the loss of critical suppliers and customers, forced and costly changes to established supply chains, and, most seriously, a direct threat to the very survival of these businesses,” Schwab said in a statement.
On Wednesday night in the group’s case, the U.S. Court of International Trade rejected Trump’s efforts for the first time, permanently blocking his “Liberation Day” tariffs and some imposed against China, Mexico and Canada.
And on Thursday, a federal judge based in Washington, D.C., issued a similar ruling that remains intact. The administration has appealed that decision, too, but it heads to a separate court that has yet to rule.
Neither case impacts some of Trump’s other tariffs imposed under separate legal authorities, including those that target specific products, such as steel, aluminum and cars.
Administration officials have blasted the judges who’ve blocked Trump’s tariffs, accusing them of intruding on presidential authority.
“Three judges of the U.S. Court of International Trade disagreed and brazenly abused their judicial power to usurp the authority of President Trump to stop him from carrying out the mandate that the American people gave him,” White House press secretary Karoline Leavitt said at a press briefing Thursday.
—Updated at 3:57 p.m. EDT
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