U.S. Court Temporarily Reinstates Trump’s Tariffs

In a quick turn of events, the U.S. Appeals Court for the Federal Circuit has ruled to temporarily reinstate President Trump’s reciprocal tariffs after his administration filed an appeal against the U.S. International Court of Trade’s (CIT) decision. The CIT argued that Trump overstepped his power when using the International Emergency Economic Powers Act (IEEPA) act to set sweeping tariffs across the globe, putting a hold on many of the duties.

The appeals court said that the CIT’s ruling is “temporarily stayed until further notice while this court considers the motions papers.” The court added that the administration must respond by June 9, while the plaintiffs must respond by June 5.

Trump Administration Weighs Options to Resume Tariffs

On Thursday, White House press secretary Karoline Leavitt said that the administration would pursue other legal avenues to enforce the tariffs, such as Section 232 of the Trade Expansion Act. Section 232 permits the President to enact restrictions against imports if they are deemed a threat to national security.

The S&P 500 (SPX) has erased most of its morning gains as investors prepare for what will likely be a lengthy legal battle.