This information was current as of 8:00 a.m. CT, June 2, 2025. We will update as developments occur.
Appeals Court Ruling
On May 29, a federal appeals court temporarily reinstated key portions of the Trump administration’s tariff strategy, just one day after a trade court ruling threatened to derail it. The U.S. Court of Appeals for the Federal Circuit issued a stay of the lower court’s decision, allowing the contested tariffs to remain in effect while the appeals process plays out.
The May 29 appeal stems from a prior day’s ruling by the U.S. Court of International Trade, which found that President Trump had exceeded his executive authority by invoking the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs on goods from foreign countries, including Canada, Mexico and China. The trade court held that the Constitution grants Congress, not the executive branch, the authority to impose tariffs, and that President Trump’s use of the IEEPA powers to implement broad-based tariffs exceeds the scope of that statute’s intended purpose.
A Narrow Tariff Relief Order
Also on May 29, a separate federal court granted two Illinois toy companies’ motion for a preliminary injunction narrowly prohibiting the Trump administration from collecting tariffs on the two companies, concluding that the IEEPA does not provide for tariffs. The relief granted by the preliminary injunction will take effect June 12. The Trump administration has appealed the decision.
Sweeping Tariffs Temporarily Back in Force
The appellate court’s stay issued on May 29 restores the enforcement of the administration’s tariffs as they were in place immediately prior to the May 28trade court ruling. In practice, this likely means that U.S. Customs and Border Protection will continue to impose the tariff rates that were in effect following the May 12 U.S.-China agreement, including the so-called “Liberation Day” tariffs (as paused or temporarily reduced). The Trump administration has expressed confidence in ultimately prevailing on appeal or, if necessary, using alternative executive authorities to preserve the tariff framework. The application of these tariffs will remain in effect until the appeals process concludes or further legal action is taken.
Current Status and Near-Term Expectations
While the appeals court has not yet ruled on the merits of the case, its temporary stay has effectively paused any immediate change to the current tariff landscape. Additional briefing is due in early June, and the timing of a final decision remains uncertain.
As a result, importers should expect continued enforcement of existing tariffs in the short term, even as legal arguments over the scope of presidential trade authority continue to play out in court.
What to Watch For
In the near term, companies should monitor the progress of the appeals process and any new tariff actions from the White House. Pending litigation brought against the administration has added uncertainty to an already volatile trade environment that could shift quickly with a new court order or executive response.
[View source.]
