Group That Won Trade Ruling Wants Tariffs Halted During Appeal

Federal Appeals Court Said Tariffs Could Continue While Appeal Process Plays Out — Which Could Take a While
Containership at Port of Long Beach
A containership departs the Port of Long Beach. (Tim Rue/Bloomberg News)

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A group of small businesses that won a ruling that most of President Donald Trump’s global tariffs are illegal want them blocked during the administration’s appeal, saying they are suffering immediate harm from economic uncertainty around the levies.

In a June 2 filing in the U.S. Court of International Trade, which last week ruled that Trump exceeded his authority in imposing his broad April 2 “Liberation Day” trade levies, the group opposed the administration’s request that the tariffs remain in place during its appeal. The government has separately asked a federal appeals court for the same thing. The appellate process will likely continue for months, so a pause that long would be a win for the White House.

“Many other businesses are suffering and will continue to suffer from the Liberation Day tariffs if a stay is granted,” the group led by New York wine importer V.O.S. Selections said. “Small businesses are particularly vulnerable, as they are less equipped to absorb these extra costs.”



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It’s unclear what effect a ruling by the trade court on the stay request would have. The court’s May 28 decision was already put on a short-term pause by the U.S. Court of Appeals for the Federal Circuit. The appeals court is also considering whether to grant a longer-lasting pause and has the power to overrule the trade court. The parties have been asked to file briefs in the Federal Circuit by June 9.

The administration has said it will ask the Supreme Court to intervene if it doesn’t get the ruling put on hold during the appeal. The U.S. Justice Department argued in court filings that the trade court’s decision was harming U.S. diplomacy and intruding on Trump’s exclusive authority to conduct foreign affairs.

In their filing, the small businesses said there was no equivalence between the harms being suffered.

Trump “is not harmed by the denial of authority he does not legally possess, nor is he harmed by courts holding him to the statutory requirements Congress imposed,” the group said. “And a stay would cause irreparable harm not only to the plaintiffs, but to thousands of businesses and millions of consumers across the country.”

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The administration has suggested that businesses could be issued tariff refunds if the trade-court ruling is upheld on appeal, but the group called the idea “insulting.”

In a ruling that took many by surprise, a three-judge panel of the trade court held that Trump wasn’t given unlimited tariff power by a 1977 emergency law. The decision was handed down in a pair of related suits filed by a group of small businesses and about a dozen Democratic-led states.

The May 28 trade court ruling was one of the biggest legal setbacks for Trump amid a wave of lawsuits over executive orders testing the limits of presidential power. Others are challenging Trump’s mass firings of federal workers, restrictions on birthright citizenship and efforts to slash federal spending already approved by Congress.