President Donald Trump generated headlines earlier this year by imposing a wide array of "Liberation Day" tariffs on goods imported from foreign countries.

Although a federal court subsequently blocked his tariffs, Trump scored a legal win this week when an appeals court reversed that move. 

Trump loses at Court of International Trade

The controversy concerns Trump's powers under the International Emergency Economic Powers Act (IEEPA), a law which President Jimmy Carter signed in 1977.

Under the IEEPA, a president may take steps to regulate commercial interactions between the United States and other nations after declaring a state of emergency.

Yet according to Breitbart, a three-judge panel at the New York-based Court of International Trade ruled that Trump had overstepped his bounds in imposing the tariffs.

It concluded that "Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs."

That ruling came in response to lawsuits filed by state governments as well as private groups, including the nonprofit Liberty Justice Center.

Appeals court reverses

However, Fox Business reported on Thursday that the White House successfully petitioned the U.S. Court of Appeals for the Federal Circuit to temporarily stay the lower court's block while it is being litigated.

Trump tariffs face legal battle as federal appeals court temporarily blocks trade ruling https://t.co/C4xe0JYVWg

— FOX Business (@FoxBusiness) May 29, 2025

"The plaintiffs-appellees are directed to respond to the United States' motions for a stay no later than June 5, 2025," the opinion read.

"The United States may file a single, consolidated reply in support no later than June 9, 2025," the appellate court's order explained.

White House heralds outcome

Kush Desai serves as a spokesperson for the White House, and Fox Business noted that he put out a statement praising Thursday's decision.

"The Federal Circuit Court’s administrative stay on the Court of International Trade’s ruling is a positive development for America’s industries and workers," the cable news network quoted Desai as saying.

"The Trump administration remains committed to addressing our country’s national emergencies of drug trafficking and historic trade deficits with every legal authority conferred to the President in the Constitution and by Congress," he insisted.

"Regardless of the developments of this litigation, the President will continue to use all tools at his disposal to advance trade policy that works for all Americans," the White House spokesperson went on to add.