A US federal appeals court granted US President Donald Trump the authority to collect the tariffs under an emergency powers legislation, on Thursday, one day after a court prevented his sweeping tariffs. In an emergency move, the Trump administration claimed that a halt to the tariffs was "critical for the country's national security," and the Court of Appeals for the Federal Circuit allowed it, reported The Associated Press. A federal trade court's order from the previous day, which claimed that Trump had "overstepped" his jurisdiction, was then put on hold by the appeals court.
The report also stated numerous lawsuits alleging that Trump is "exceeding his authority" had been launched against the Trump administration over his Liberation Day tariffs. The Court of International Trade's orders have been temporarily suspended.
On Wednesday, the US Court of International Trade's three-judge panel said President Trump had overstepped himself when he used the 1977 International Emergency Economic Powers Act to slap tariffs on almost all nations worldwide.
Donald Trump declared sweeping tariffs on imports from almost every nation in the world on April 2 of this year, with a basic rate of 10%. Following several days of market chaos, Trump took a moment to reflect on the events of the previous week. The three-judge panel stated, "The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage," while permanently blocking Trump's sweeping tariff orders that have been in effect since January. The panel further added, “That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it.”
Nearly instantly, the Trump administration challenged the court's jurisdiction by filing a notice of appeal. However, other tariffs imposed under different legislation, such as those on steel, aluminium, and autos, are unaffected by the verdict.