Overview

• The U.S. Court of International Trade ruled on May 28 that the ‘Liberation Day’ tariffs likely exceed the president’s authority under the International Emergency Economic Powers Act.
• On June 5, the Court of Appeals for the Federal Circuit issued an administrative stay of the lower court’s decision, allowing the tariffs to remain in effect during the appeal.
• States and businesses challenging the tariffs cited comments from Kevin Hassett, Peter Navarro and Commerce Secretary Howard Lutnick that the lower court’s ruling would not derail ongoing trade negotiations.
• Challengers contend that keeping the tariffs in place causes irreparable harm to companies and consumers through higher costs and disrupted supply chains.
• The appeals court’s forthcoming decision will define the division of trade powers between Congress and the presidency and influence U.S. dealings with key trading partners.