On Monday, the Justice Department requested the US Court of Appeals for the Federal Circuit to extend its previous temporary suspension of a lower court’s May 28 ruling that deemed most of Trump’s tariffs illegal. The government argued that the ruling undermines the president’s capacity to navigate foreign relations.
The Federal Circuit could issue its ruling at any moment regarding the continuation of the pause during the appeals process, which is expected to extend for several months. The administration has also signaled that it plans to appeal to the US Supreme Court if the appeals court lifts the current stay.
In its submission, the administration contended that blocking the tariffs would weaken “America’s bargaining power in important trade negotiations, incentivizing other countries to exploit our nation and severely damage our economy.”
In a pair of lawsuits initiated by a coalition of small businesses and Democratic-led states, a three-judge panel of the US Court of International Trade concluded last month that Trump had overstepped his authority in imposing tariffs under the 1977 International Emergency Economic Powers Act.
The tariffs affected by this ruling encompass Trump’s global 10% tariff, his April 2 “Liberation Day” tariffs, and measures aimed at China, Canada, and Mexico related to fentanyl trafficking. Other tariffs on steel, aluminum, and automobiles, imposed under different laws, remain unaffected.
In opposing a prolonged pause, the small businesses and Democratic-led states have cited public remarks from administration officials who downplayed the ruling and asserted they have alternative means of imposing tariffs. The administration countered that stance on Monday.
“Disrupting the current tariffs at this crucial time based on the notion that the President could theoretically implement other (less effective) tariffs later, under alternative authorities, does nothing to address the timing issue: The emergencies are arising now, negotiations are happening now,” the government stated.
Numerous other lawsuits disputing Trump’s tariffs have been suspended until the Federal Circuit reaches a decision. Last week, a lower court judge revealed that one case concerning Trump’s termination of a tariff exemption for low-value packages from China would proceed.
