Overview

• On May 29, a federal appeals court granted an emergency stay that keeps Trump’s reciprocal tariffs, imposed in April at rates of 10% to 50%, in effect pending appeal.
• A U.S. International Trade Commission tribunal had ruled that using the 1977 International Emergency Economic Powers Act to impose uncapped tariffs exceeded presidential authority and was unconstitutional.
• The White House labeled the tribunal’s decision “manifestly erroneous” and said it would press its case through higher courts, including the possibility of Supreme Court review.
• Markets surged after the commission’s initial blockage, with Asian and European indices climbing, and trade partners such as China and Canada called for permanent removal of the measures.
• Administration officials have indicated they may pursue alternative legal bases under Trade Act Sections 232 or 301 to uphold the tariffs if the IEEPA justification fails.