WASHINGTON (AN) — The White House celebrated a federal appeals court ruling that it said overturned a lower court's case of "judicial overreach" and allows it to keep collecting tariffs that have rattled the global economy.
"Ultimately, the Supreme Court must put an end to this," White House press secretary Karoline Leavitt told reporters on Thursday night.
The federal appeals court granted a White House bid to temporarily suspend the U.S. Court of International Trade's order, which ruled on Wednesday that U.S. President Donald Trump's global tariffs were illegal.
In their ruling, a three-judge panel of the trade court sided with small businesses and some states that argued Trump exceeded his authority under the International Emergency Economic Powers Act by hitting dozens of countries with 10% tariffs, China with 20% tariffs over illegal fentanyl trafficking, and Canada and Mexico with 25% tariffs.
The Trump administration said in its appeal "the political branches, not courts, make foreign policy and chart economic policy." Leavitt predicted the administration would prevail at the Supreme Court, too, because the three "activist" judges had "brazenly abused their judicial power."
Wall Street initially responded favorably to the trade court panel's ruling that struck down most of Trump's tariffs, which also included 50% tariffs on the European Union. Stock market futures, in particular, saw sharp gains following the initial news.
The positive sentiment dwindled, however, and the federal appeals court's temporary stay, which reinstated the tariffs for now, added more market uncertainty. The White House has since pursued trade negotiations with some countries and moved to suspend or revised parts of its tariffs regime.
The next hearing in the case will be held a week from now. Now matter the outcome, Trump trade adviser Peter Navarro vowed to keep up the tariffs, saying "even if we lose, we will do it another way."
Trump used different legal measures that still stand when he imposed tariffs on cars and materials such as aluminium and steel.
Europe's dispute with the U.S. should be conducted through World Trade Organization-led "tools," Angela Paolini Ellard, WTO deputy director-general, told an economic summit at Davos, Switzerland earlier this week.
"The tariff firestorm we're experiencing is a huge test for the WTO. For it to withstand, it's crucial that WTO members and business continue to appreciate its benefits and utilize its tools," Ellard said in a video address to the Europe-Asia Economic Summit.
Washington and Brussels have been holding talks this week to reach a trade deal. "Our message to WTO members and business navigating today's turbulent waters has been not to shoot from the hip," she added, "but to remain level-headed in reacting, as many have done."
Oregon Attorney General Dan Rayfield and Arizona Attorney General Kris Mayes led a multi-state lawsuit against the tariffs joined by their counterparts from Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York and Vermont.
Rayfield had called the trade court's ruling a victory for Oregon, working families, small businesses, and everyday Americans. "We brought this case because the Constitution doesn’t give any president unchecked authority to upend the economy," he said. "This ruling reaffirms that our laws matter, and that trade decisions can’t be made on the president’s whim."
