Trump Wins Tariff Fight—for Now

Transcript

00:00In a significant development in US trade policy, a federal appeals court has temporarily allowed

00:06former President Donald Trump to continue collecting tariffs under the International

00:11Emergency Economic Powers Act, i.e. EPA, despite a recent lower court ruling that deemed the move

00:18unconstitutional. The decision, issued on May 29, 2025, comes just one day after the US Court

00:27of International Trade, ruled against the so-called Liberation Day tariffs, stating that Trump had

00:33overstepped his authority under the IEEPA. The court concluded that the law does not grant the

00:39president the power to unilaterally impose broad tariffs without explicit congressional approval.

00:47Trump introduced the tariffs in April 2025, citing national emergencies involving trade deficits,

00:54immigration and drug trafficking. The measures imposed duties as high as 145% on Chinese goods

01:02and 25% on imports from key trading partners like Canada and Mexico. The administration defended the

01:10tariffs as necessary to protect American economic and national security interests. However, business

01:17groups and legal experts swiftly challenged the legality of the action, arguing that the IEEPA was not

01:25designed to authorise sweeping trade restrictions. The case, VOS Selections, Inc. v. United States,

01:33highlighted the constitutional concerns surrounding executive overreach and the balance of power

01:38between the presidency and Congress. The appeals court's temporary stay permits the tariffs to remain

01:45in effect while the legal process continues. The Trump team has signalled its willingness to take the

01:52case to the Supreme Court if needed. In the meantime, the uncertainty has created disruptions for US

01:59businesses and importers, many of whom report rising costs and supply chain instability. Industry leaders

02:07are calling for a swift resolution, warning that prolonged ambiguity could have lasting economic consequences.

02:13As the legal battle unfolds, the case is poised to become a landmark test of presidential authority

02:20under emergency powers and a flashpoint in the broader debate over the limits of executive power

02:27in economic policymaking.