A federal appeals panel has frozen a lower-court order that struck down President Donald Trump’s sweeping import duties, giving the White House breathing room until July 31. The stay preserves tariffs on goods from China, Canada, and Mexico, duties that have become a central bargaining chip in ongoing trade talks and a live cost factor for manufacturers racing to lock in third-quarter contracts.
Stay Preserves White House Leverage
The U.S. Court of Appeals for the Federal Circuit voted 11-0 to pause a May 28 decision by the Court of International Trade, which had ruled that four Trump executive orders exceeded the powers granted under the International Emergency Economic Powers Act (IEEPA).
In its June 9 motion, the administration warned that removing the levies, even briefly, would “catastrophically” undercut America’s negotiating stance. The appellate judges agreed, issuing a temporary stay while they review the merits of the case. Should they ultimately side with the lower court, the government has already signaled it will seek immediate relief from the Supreme Court.
Limits of IEEPA Face Intensive Scrutiny
The legal challenge centers on whether the president exceeded his authority by using IEEPA to impose broad economic measures rather than targeted sanctions. Five small importers, joined by 12 states, argue it cannot; the trade court concurred, noting the president’s actions went beyond any authority Congress intended. Legal scholars say the appeal will test how far emergency powers can be stretched before colliding with the Constitution’s assignment of tariff policy to Capitol Hill. Recent World Trade Organization data show U.S. importers have paid roughly $165 billion in additional duties since the first Trump tariffs took effect, an outlay many firms expected to recover if the lower-court ruling stood.
Tariff Visibility Becomes a Competitive Edge
Even if Trump’s tariffs are ultimately overturned, the precedent of unilateral, fast-moving trade actions remains. Rapid shifts in duties, often tied to political cycles, have become a recurring disruptor in supply chain planning. For companies building long-term sourcing strategies, the risk isn’t just higher costs but unstable rules of engagement. Treating tariffs as one-off shocks is no longer enough; structural flexibility is becoming a core competitive asset.
