A federal appeals court on Thursday permitted US President Donald Trump to temporarily continue imposing tariffs under an emergency powers legislation as his administration challenges a ruling that invalidates most of his signature economic policies.
The Trump administration’s emergency motion, which claimed that stopping the tariffs would be “critical for the country’s national security,” was granted by the Court of Appeals for the Federal Circuit.
A stay issued by a federal trade court the day before was suspended for the time being by the appeals court.
Trump is facing numerous lawsuits arguing that his “Liberation Day” tariffs went beyond his power and gave him personal control over the nation’s trade policy.
Trump overstepped his authority when he used the 1977 International Emergency Economic Powers Act to declare a national emergency and defend the sweeping tariffs, according to ruling by a three-judge panel of the U.S. Court of International Trade on Wednesday.
The ruling was a major blow to Trump, whose erratic trade policies have caused financial markets to shake, interfered with international trade, and increased the risk of price rise.
In its filing in the trade court lawsuit on Thursday, the Trump administration emphasised the same points it had made all along, such as the assertion that the courts had no authority to challenge the president’s decision to invoke the emergency law.
Noting that the trade court had decades before permitted former President Richard Nixon to apply tariffs on an emergency basis under a similar law, the administration further argued that Trump’s interpretation of the statute should be upheld.
Peter Navarro, the White House trade adviser, said on Thursday that if the Trump administration loses its legal battles over trade policy, it will look for other ways to impose tariffs.
Speaking to reporters at the White House, Navarro added that the administration is still in trade negotiations with other nations and that U.S. tariffs will continue in effect for the time being due to a court-issued stay.
In a statement released on Thursday, the Liberty Justice Center, which defended several businesses in a lawsuit to halt the tariffs, said the appeals court’s ruling “is merely a procedural step as the court considers the government’s request for a longer stay pending appeal.”
Jeffrey Schwab, senior counsel at Liberty Justice Center said in the statement, “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.”