President Donald Trump’s tariff regime will remain intact—at least for now—after the U.S. Court of Appeals for the Federal Circuit issued a stay on Tuesday, halting a lower court’s decision that had declared the tariffs unlawful. The appellate court also scheduled an expedited en banc review, signaling the case’s legal and political gravity.
The dispute centers on Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify tariffs imposed during his administration. Five small businesses and a coalition of states challenged the move, arguing that the IEEPA does not grant the president authority to unilaterally levy tariffs. Earlier this year, the U.S. Court of International Trade sided with the plaintiffs, ruling that the tariffs exceeded executive authority and issuing an injunction to block them.
That decision is now suspended pending appeal.
In a brief order, the Federal Circuit Court granted the Trump administration’s request for a stay, preserving the tariffs while the legal process unfolds. The court concluded that both sides presented “substantial arguments” and determined that maintaining the status quo was warranted under established legal standards.
Crucially, the court escalated the matter to be heard en banc, meaning it will be reviewed by the entire bench of active judges—a procedural rarity reserved for cases of exceptional legal or constitutional significance.
Oral arguments are scheduled for July 31 at 10:00 a.m. in Courtroom 201 at the Federal Circuit courthouse in Washington, D.C.
The Liberty Justice Center, which represents the five small business plaintiffs, expressed disappointment at the continuation of the tariffs but welcomed the fast-tracked review.
“We’re disappointed the federal circuit allowed the unlawful tariffs to remain in place temporarily,” said Jeffrey Schwab, Senior Counsel at the Liberty Justice Center.
“But every court to rule on the merits so far has found these tariffs unlawful… and we have faith that this court will likewise see what is plain as day.”
Meanwhile, the White House praised the decision, with spokesperson Kush Desai defending the administration’s actions:
“The Trump administration is legally using the powers granted to the executive branch by the Constitution and Congress to address our country’s national emergencies of persistent goods trade deficits and drug trafficking. The US Circuit Court of Appeals’ stay order is a welcome development.”
