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Politics

Trump may take tariff block ruling to Supreme Court as soon as Friday

by May 29, 2025
written by May 29, 2025

The Trump administration signaled Thursday that it may ask the US Supreme Court as early as Friday to temporarily reinstate tariffs that were blocked by a federal trade court ruling this week, as per a CNBC report.

In a court filing, the administration said it would seek “emergency relief” from the Supreme Court if the US Court of Appeals does not itself grant a stay of the lower court’s ruling.

The move follows a decision by the US Court of International Trade that struck down dozens of country-specific tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act.

The judges ruled that the law does not “confer such unbounded authority” to presidents.

Their decision imposed a nationwide and permanent block on the retaliatory tariffs that were introduced in early April under Trump’s “liberation day” trade initiative.

The ruling also prohibits the administration from modifying the blocked tariffs in the future and gives it 10 days to comply.

Trump admin attacks court

While appealing the decision, the administration is also asking the trade court to pause enforcement during the appeal process.

“It is critical, for the country’s national security and the President’s conduct of ongoing, delicate diplomatic efforts, that the Court stay its judgment,” Department of Justice attorney Sosun Bae wrote.

Bae cited declarations from several cabinet officials — including Secretary of State Marco Rubio, US Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent — warning that the ruling could derail a preliminary trade agreement with China and jeopardise future talks.

Top White House officials sharply criticized the trade court’s decision.

“We are living under a judicial tyranny,” said Deputy Chief of Staff Stephen Miller, who earlier posted that “the judicial coup is out of control.”

Advisor Jason Miller said on Fox Business that “unelected judges” were interfering with the administration’s trade and tax policies.

Trade advisor Peter Navarro called the court “globalist” and “pro-importer” in a television interview, suggesting the judges were biased against the administration.

The panel of judges — Jane Restani, Timothy Reif, and Gary Katzmann — was appointed by Presidents Ronald Reagan, Donald Trump, and Barack Obama, respectively.

The option to revive Trump tariffs

Tariffs have been a key element of Trump’s economic agenda, serving both as a negotiating tool and a potential revenue source for military spending and tax cuts.

Despite the setback, Navarro said the administration still has options.

“Any trade lawyer knows there’s just a number of different options we can take,” he said. “So nothing has really changed here in that sense.”

Goldman Sachs economists said the recent court ruling striking down former President Trump’s reciprocal tariffs is a setback but unlikely to derail the administration’s broader tariff agenda.

In a note to clients, the bank said the White House retains multiple legal avenues to reimpose similar trade measures.

“This ruling represents a setback for the administration’s tariff plans and increases uncertainty, but might not change the final outcome for most major US trading partners,” the economists wrote.

According to Goldman, one of the most immediate workarounds could come via Section 122 of the Trade Act of 1974, which allows the president to impose tariffs of up to 15% without a formal investigation.

While such measures would expire after 150 days without congressional approval, they could provide a near-term substitute for the now-invalidated levies.

Goldman flagged Section 338 of the Trade Act of 1930 as another potential option, noting that while it has never been used, it allows the president to impose tariffs of up to 50% on imports from countries that discriminate against US goods.

In short, while the court ruling adds a layer of legal complexity, Goldman believes it is unlikely to significantly alter the administration’s ability to pursue its trade agenda.

The post Trump may take tariff block ruling to Supreme Court as soon as Friday appeared first on Invezz

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