Context:

A federal appeals court has paused a lower court ruling that blocked President Trump's contested tariffs, allowing them to remain in effect temporarily. The U.S. Court of Appeals for the Federal Circuit has scheduled an expedited review to assess whether Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA). This legal battle involves challenges from several small businesses and states, who claim the tariffs are unlawful. While the U.S. Court of International Trade had previously sided with the plaintiffs, the appeals court's decision maintains the status quo until a full bench review on July 31. The Liberty Justice Center criticized the temporary allowance of tariffs but welcomed the expedited review, while the Trump administration defended its use of executive powers to address trade deficits and national emergencies.

Dive Deeper:

• The federal appeals court issued a stay on a lower court's decision that had blocked President Trump's tariffs, ensuring these tariffs remain in effect for now.

• The expedited review by the U.S. Court of Appeals for the Federal Circuit will determine if Trump exceeded his legal authority under the IEEPA.

• The case was initiated by five small businesses and a coalition of states challenging the legality of the tariffs, which they argue are unlawful.

• Previously, the U.S. Court of International Trade had ruled in favor of the plaintiffs, but this decision is on hold pending the appeals court review.

• The full bench of active judges will conduct a rare en banc session for this case, with oral arguments scheduled for July 31 in Washington, D.C.

• The Liberty Justice Center, representing the plaintiffs, expressed disappointment at the temporary continuation of tariffs but appreciated the accelerated legal process.

• The Trump administration, through a spokesperson, justified the tariffs as a legal exercise of executive powers to combat trade deficits and drug trafficking, welcoming the appeals court's decision.