Latest Tariff News: Appeals Court Reinstates Tariffs as Lower Courts Split on Presidential Authority
Recent developments in multiple federal courts have introduced new complexity to the ongoing legal review of President Trump’s tariff actions, as courts issued differing rulings and a federal appeals court temporarily reinstated the tariffs pending further proceedings.
On May 28, the U.S. Court of International Trade (CIT) issued a sweeping ruling that struck down the president’s use of the International Emergency Economic Powers Act (IEEPA) to impose broad-based tariffs. The CIT found that the president had exceeded his authority under the statute, invalidating a 10% universal tariff on imports as well as higher rates targeting goods from China, Canada, and Mexico. The decision emphasized that while IEEPA does grant the president emergency powers, it does not provide “unbounded tariff authority,” which the Constitution expressly delegates to Congress.
However, less than 24 hours later, the U.S. Court of Appeals granted the Justice Department’s emergency request for a stay, effectively reinstating the tariffs while the appeals process plays out. The decision keeps the April 2 “Liberation Day” tariffs in effect in the short term.
Briefs in the appeals case are due June 5 from the plaintiffs and June 9 from the government, with the outcome expected to provide further clarity on the scope of executive authority under IEEPA.
Meanwhile, a separate federal district court issued its own ruling, going even further than the CIT. That court held that IEEPA does not authorize the president to impose tariffs at all, representing an even broader interpretation of constitutional limits on executive trade authority. While the judge only imposed a preliminary injunction on behalf of the two plaintiffs in that case—and stayed the ruling for 14 days to allow for appeal, the opinion adds to growing legal uncertainty and highlights the risk of prolonged litigation.
Why It Matters for the Recreational Boating Industry
The recreational boating industry, which relies on a stable, transparent global trade environment, is closely watching these legal developments.
While NMMA supports policies that protect U.S. manufacturers and strengthen domestic production, we continue to advocate for a nuanced and targeted trade approach—one that recognizes the unique needs of the recreational boating sector. This includes maintaining strong trade relationships with Canada and Mexico, preserving access to critical materials like copper, and ensuring marine-specific exemptions when tariffs are considered.
NMMA will continue to monitor both court cases and their potential appeal to the U.S. Supreme Court. As the legal framework for trade policy continues to evolve, we remain committed to keeping members informed and ensuring that the voice of recreational boating is heard in Washington.
For more information, or to provide input, contact Clay Crabtree, NMMA Senior Director of Public Policy, at [email protected].