Judges Uphold Trump-Era Tariffs as Ex-President Pushes SCOTUS to Intervene

Trade tensions flare again as an appeals court leaves controversial tariffs intact—while Trump lobbies the highest court for a final say. Another reminder that when politicians play economic chess, markets and consumers foot the bill.

Impact of Trump Tariffs Stay on Trade Authority and Market Volatility

Trump’s tariffs ruling from the lower US Court of International Trade had determined that President Trump exceeded his constitutional authority when imposing these sweeping tariffs. However, the appeals court trade ruling has suspended that decision, allowing the presidential authority on tariffs to continue under emergency legislation, which means the tariffs are going to stay in place for now.

Constitutional Battle Continues

The original trade court decision said that the tariffs violated constitutional principles because only Congress has the power to levy taxes and tariffs. The judges ruled that Trump exceeded his authority by invoking the 1977 International Emergency Economic Powers Act, and this is where the whole debate about presidential authority on tariffs really started heating up.

Trump had this to say about the ruling, pushing Supreme Court for quick reversal:

The President also went further and stated:

Business Impact and Market Response

The decision to keep Trump tariffs in place affects five small businesses that import goods from other countries, represented by the Liberty Justice Center. These companies challenged the presidential authority on tariffs in court, and they’re not happy about this latest appeals court trade ruling either.

Jeffrey Schwab, senior counsel for the Liberty Justice Center, had this to say:

The tariffs, announced on “Liberation Day” in April, include a 10% levy on UK imports and caused aggressive stock market sell-offs when first implemented. Right now, these businesses are still dealing with the extra costs while this whole legal battle plays out.

Ongoing Trade Negotiations

Despite all the legal uncertainty, trade negotiations continue. US Treasury Secretary Scott Bessent told Fox News that the Trump tariffs ruling had not interfered with international discussions, which is somewhat surprising given all the drama.

Bessent stated:

The Court of Appeals for the Federal Circuit has set deadlines of June 5 and June 9 for responses from the lower trade court and Trump’s administration. The case appears headed for Supreme Court review, where the constitutional dispute over presidential authority on tariffs will likely be resolved. Until then, Trump tariffs will stay in place, and the appeals court trade ruling ensures these measures continue affecting businesses and consumers across the country.