Federal Court Upholds Trump's Controversial 'Liberation Day' Tariffs

A federal appeals court has temporarily upheld President Trump's 'Liberation Day' tariffs while a decision is pending on their legality under the International Emergency Economic Powers Act. Despite concerns and previous rulings against these tariffs, they remain in effect as they undergo further judicial scrutiny.

The U.S. Court of Appeals for the Federal Circuit in Washington, D.C. has allowed President Donald Trump's extensive tariffs to persist while reviewing a lower court decision that blocked them. This move enables the continuation of Trump's 'Liberation Day' tariffs imposed on numerous U.S. trading partners, including Canada, China, and Mexico.

The court has yet to determine if the tariffs align with an emergency economic powers act Trump cited for their justification. The litigation, termed of 'exceptional importance,' warrants a full 11-member court hearing, diverging from the usual three-judge panel procedure. Arguments are set for July 31, while businesses endure market turmoil.

The ruling does not alter tariffs under traditional legal authority, like those on steel and aluminum. Previous rulings favored the view that these tariffs exceed the president's powers under the U.S. Constitution, meant to reside with Congress. Further legal challenges continue as states and businesses fear the economic impact.

(With inputs from agencies.)