A U.S. federal appeals court on Thursday temporarily reinstated President Donald Trump’s sweeping “reciprocal” tariffs, granting a stay on a lower court ruling that had declared the duties illegal and ordered their removal within 10 days.
The U.S. Court of Appeals for the Federal Circuit sided with the Trump administration, allowing the contested tariffs to remain in effect while it reviews the decision of the U.S. Court of International Trade. That court had ruled that Trump exceeded his legal authority by using emergency powers to impose broad tariffs on imports from dozens of trading partners.
The legal battle was brought by a coalition of small businesses and U.S. states, who argued the duties violated the Constitution by bypassing congressional authority over trade. The Trump administration swiftly appealed, calling the trade court’s decision “judicial overreach.”
At the heart of the case are Trump’s 10 percent blanket tariff and a set of “reciprocal” duties aimed at pressuring countries to negotiate new trade deals. Though Trump had delayed the full implementation of these measures until July, Thursday’s ruling keeps the tariff framework intact for now.
Despite the legal uncertainty, markets reacted calmly. The S&P 500 rose 0.4 percent, with investors appearing to discount near-term trade risks. However, the dollar weakened against safe-haven currencies like the yen and Swiss franc, signaling persistent caution over future trade volatility.
Analysts note that even if the courts ultimately strike down the tariffs under current statutes, the president retains other legal tools to reimpose them—keeping global markets and policymakers in a holding pattern.
