For a brief moment, American importers rejoiced as a federal court ruled that President Trump’s “Liberation Day” tariffs were unconstitutional. But that celebration was short-lived.
Just a day after the U.S. Court of International Trade deemed the tariffs illegal under the Constitution, the U.S. Court of Appeals for the Federal Circuit reinstated them pending the appeal. This has reignited debate over the boundaries of presidential authority in trade and left businesses grappling with uncertainty.
The original tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), were sweeping in nature and targeted goods from major trade partners, including China and Mexico. While the Trump administration argued they were essential for national security, critics viewed them as politically motivated economic overreach.
Now, with the appellate court granting a temporary stay, the tariffs remain enforceable. The Biden administration, though not the architect of the policy, is defending it on procedural and national interest grounds.
Importers and trade groups expressed disappointment. “We had hoped for a clear end to these burdensome tariffs. Instead, we’re back in legal limbo,” said Amanda Liu, spokesperson for the Coalition of American Importers.
The case underscores a broader tension between executive expediency and legislative oversight. Legal experts say the outcome could have long-lasting implications for how presidents use emergency powers in economic contexts.