The US federal appeals court has upheld President Donald Trump’s tariffs while reviewing a lower court’s decision that claimed Trump exceeded his authority in imposing them.

The US federal appeals court on Tuesday, 10 June 2025, upheld the continuation of President Donald Trump’s tariffs while it reviews a lower court’s ruling that had struck them down. The lower court had argued that Trump exceeded his authority in implementing the tariffs.

The US Court of Appeals for the Federal Circuit in Washington, DC, ruled that Trump can continue enforcing his Liberation Day tariffs he imposed on 2 April 2025, on imports from most trading partners, including Canada, China, and Mexico.

Earlier, on 28 May 2025, the US Court of International Trade ruled in cases brought by small businesses and several US states, including Oregon, against the Trump Administration’s tariffs enacted under the International Emergency Economic Powers Act of 1977 (IEEPA).

The Court notes that the Constitution gives Congress the exclusive powers to “lay and collect taxes, duties, imposts and excises” and “regulate Commerce with foreign Nations.” The question is whether the IEEPA allows the President to impose unlimited tariffs on goods from almost every country. The Court ruled no and set aside the tariffs.

The Trump administration swiftly appealed the ruling, prompting the Federal Circuit in Washington to suspend the lower court’s decision on 29 May 2025.  This pause allows the court to deliberate on whether to enforce a more extended stay, which means the tariffs will remain in effect.

The appeals court has not yet decided whether the tariffs are permissible under the Emergency Economic Powers Act invoked by Trump. However, the court has allowed the tariffs to remain in effect while the appeals process is underway. The ruling does not affect tariffs imposed under traditional legal authority, such as those on steel and aluminium imports.

The Trump Administration has increased tariffs on U.S. imports of steel, aluminium, and their derivatives from 25% to 50% under the Section 232 measures. These updated tariffs, aimed at addressing import concerns, officially took effect on 4 June 2024.