The federal appeals court suspended a lower ruling that hinders President Donald Trump’s sweeping tariffs and was with the administration on Thursday in a legal battle over the use of the White House emergency law to enact import tax penalties.
After a few weeks of relatively calm this week, this week injecting the market with the volatility before and after this week, court observers and economists told Fox News Digital they don’t think the dust will settle soon.
As this lawsuit continues to unfold, here’s what you need to know:
Trump condemns the court’s “political” tariff decision and calls on the Supreme Court to act quickly
President Donald Trump keeps charts when making mutual tariff remarks at an event at Washington, DC’s Rose Garden on April 2, 2025 (AFP via Getty Images)
What’s going on now?
The U.S. Federal Circuit Court of Appeals temporarily maintained its lower court ruling on Thursday, preventing Trump’s swept duties from coming into effect.
The ruling suspends the decision by the U.S. Court of International Trade (CIT) and allows Trump to continue enacting a baseline tariff of 10% and the so-called “mutual tariffs” announced on April 2 under the International Emergency Economic Force Act or the IEEPA.
It came a day after the US International Trade Court ruled unanimously to block tariffs.
Former President Barack Obama and former President Ronald Reagan, the three Trump-appointed judge panel members, have unanimously ruled that Trump has stepped over his authority under Yepa. They pointed out that as Commander-in-Chief, Trump does not have the “unlimited authority” to impose tariffs under the emergency law.
Currently, the Trump administration and plaintiffs’ lawyers are tasked with adhering to a quick schedule with deadlines in both courts. Plaintiffs will be required to file a response with the International Trade Court until 5pm on Monday, according to Jeffrey Schwab, senior counsel and litigation director at the Liberty Center for Justice, representing the five small businesses that sued the administration.
The Fox News graphics show how President Donald Trump responded to tariffs. (Fox News; Mandel Ngan/AFP via Getty Images)
The Federal Circuit Court of Appeals will file the Trump administration until Thursday to submit a response to the plaintiffs and to submit a response to the Trump administration, Schwab told Fox News Digital in an interview.
The goal is to move quickly, and the plaintiff’s lawyer told Fox News that he plans to file briefs with both courts before the deadline to mitigate harm to clients.
“Hopefully, Schwab said swift action would allow the court to pass a ruling “or else it is faster.”
What is at risk?
The Trump administration praised the stay as a victory.
The appeals court is “positive development for American industry and workers,” White House spokesman Kush Desai said in a statement.
“The Trump administration remains committed to addressing all legal authorities awarded by the Constitutional President and Congress, as well as our country’s national emergency regarding drug trafficking and the historic trade deficit.”
However, some economists warned that continuing to pursue sudden tariffs could backfire.
Federal judge blocks Trump’s tariff enforcement order 5
The trader works on the floor of the New York Stock Exchange in New York City on March 28, 2025. (Spencer Platt/Getty Images)
The bottom line of the Trump administration is that they need to go back to their place. [where] They use these huge mutual tariffs and all of them as negotiation tactics,” said William Klein, an economist and senior fellow honorary at the Peterson Institute for International Economics, in an interview.
Cline said this was a framework previously set forth by Treasury Secretary Scott Bescent.
“I think we’ll keep in mind that Trump and Vance have this view that tariffs are beautiful as they will restore work on America’s rusty belt.
“Both of these are fantasies.”
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What’s going to happen now?
The plaintiffs and the Trump administration are waiting. But whether it’s a wait depends on who is asked.
The economists pointed out that the longer the court process takes, the more uncertainty will be injected into the market. This can slow economic growth and hurt consumers.
For US small business owners who sued Trump over tariffs, it could potentially endanger irreparable harm.
“Some of the harm has already happened, and the longer it lasts, the worse it gets,” Schwab said.
A woman under the purple umbrella passes the Supreme Court on February 28, 2024 in Washington. (AP photo/Jaclyn Martin)
The White House said it will hold a tariff fight with the Supreme Court if necessary. However, it is unclear whether the High Court will choose to take up the case.
This challenge comes at a time of growing tensions in Trump’s relationship with the judiciary, which could put the High Court on the rise from taking on such politically charged cases.
The plaintiff’s lawyers said there was a high possibility that the case would be appealed to the Supreme Court, but it is unclear whether it would move to review it.
“The case is in front of the Federal Circuit Court, which applies essentially to the state, unlike a particular court of appeals that has a particular district, so even if the Supreme Court decides, the case may not be taken,” Schwab said.
For now, the burden of proof will be shifted to the government. The government must convince the court that if an injunction is in force, it is a high legal standard that the Trump administration must meet, it will suffer “irreparable harm.”
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Beyond that, Schwab said the court would consider testing the balance. If both sides claim irreparable harm, justice says, “Who is irreparable hurt?
“And I think it’s fair to say that our clients are irreparably hurtful than the US federal government, because our clients don’t exist and there certainly is a US federal government.”
Breanne Deppisch is a national political reporter for Fox News Digital, covering the Trump administration, focusing on the Department of Justice, the FBI and other national news.
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