Trump’s tariffs can stay in place while court hears appeal

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Who brought the case?

The court combined two separate claims into one judgement.

Firstly, this involved a selection of private companies, such as Terry Precision Cycling and Genova Pipe. Secondly, the court also heard from a number of US states – including Oregon and New York.

The companies allege that they are suffering economic injuries because of the tariffs while the various states involved are suing Trump’s administration for “direct financial harm” due to the added import costs they face.

What was under discussion?

As the court document sets out, Donald Trump declared several national emergencies and consequently imposed various tariffs since his return to the White House.

Rather than seeking congressional approval to raise these new taxes, he’s done so through an executive order. The court was asked to assess whether Trump can impose these tariffs under the International Emergency Economic Powers Act (IEEPA).

This law hands presidents broad authority to respond to extraordinary threats that originate outside the US.

What was the verdict?

Here’s the crucial bit: The court determined that Donald Trump’s tariff orders “exceed any authority granted to the President by IEEPA to regulate importation by means
of tariffs”.

“IEEPA does not authorize any of the
Worldwide, Retaliatory, or Trafficking Tariff Orders,” the judgement reads.

And, the court rules out simply giving a remedy to the claimants alone, explaining: “If the challenged Tariff Orders are
unlawful as to Plaintiffs they are unlawful as to all”.