In a dramatic twist to a fast-moving legal fight, a federal appeals court has temporarily reinstated President Donald Trump’s sweeping global tariffs, pausing a lower court ruling that struck them down just a day earlier.

The US Court of Appeals for the Federal Circuit issued the stay late Thursday, restoring Trump’s ability to impose tariffs under the International Emergency Economic Powers Act (IEEPA) — for now. Both sides have been ordered to submit written arguments in early June, setting up a pivotal legal showdown.

What Happened:

  • On Wednesday, the Court of International Trade (CIT) ruled that Trump overstepped his authority by invoking IEEPA to impose widespread tariffs, including the controversial “Liberation Day” tariffs announced in April.
  • That ruling was a blow to a central pillar of Trump’s economic agenda and prompted immediate backlash from the White House.
  • Less than 24 hours later, the appeals court hit pause, reinstating the tariffs while legal proceedings continue.

What’s at Stake:

The original CIT ruling blocked tariffs on imports from China, Mexico, and Canada, meant to combat fentanyl trafficking. It also covered the broader tariffs on most US trade partners under Trump’s global economic reset. However, auto, steel, and aluminum tariffs — enacted under a different law (Section 232) — remain untouched.

White House press secretary Karoline Leavitt slammed the CIT decision, calling the judges “activist” and claiming the ruling undermines US credibility. Ironically, one of the judges was appointed by Trump himself.

The Liberty Justice Center, representing small businesses harmed by the tariffs, said the appeals ruling is a “procedural step” and expressed confidence the court would ultimately reject Trump’s position.

Additional Lawsuits:

Separately, in Washington, US District Judge Rudolph Contreras sided with two family-owned toy companies — Learning Resources and hand2mind — ruling that they’d suffer irreparable harm from the tariffs and that IEEPA doesn’t authorize import taxes. However, he paused enforcement for two weeks to allow for an appeal, which the Trump administration promptly filed.

What’s Next:

  • June 5: Deadline for plaintiffs’ response in appeals court
  • June 9: Government’s final reply
  • A full ruling will follow soon after

For now, Trump’s tariffs are back in effect — but with mounting legal pressure and economic uncertainty, the battle over presidential trade powers is far from over.