Trump gets slight relief as tariffs temporarily reinstated amid ongoing legal battle

President Donald Trump get a temporary legal lifeline for his sweeping April 2025 tariff agenda, but it’s only a pause, not a win.

According to Bloomberg, on May 29, a US federal appeals court has stayed a lower court ruling that would have forced his administration to unwind the majority of tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

On May 28, the US Court of International Trade dealt a major blow, ruling that Trump had overreached by using emergency powers to impose blanket tariffs on dozens of nations, citing issues like fentanyl trafficking and trade deficits as national threats.

According to Bloomberg Economics, the ruling would have slashed the average US tariff rate from nearly 27 per cent to below 6 per cent, a dramatic rollback of Trump’s hardline trade stance.

Trump responded on social media, labelling the court’s decision “so wrong and so political” and urging the Supreme Court to act “quickly and decisively.” White House press secretary Karoline Leavitt echoed his stance, warning that if courts could derail a president’s trade policy, it would weaken “Presidential Power” and disrupt diplomacy, as per Bloomberg.

While the stay allows the tariffs to remain in place at least until 9 June, when further legal arguments will be heard, the administration knows this is only a temporary shield as per Bloomberg.

According to Bloomberg, a second federal judge has also struck down a set of tariffs, though that ruling is limited to a specific plaintiff and delayed for 14 days to allow for appeal.

Team Trump eyes for a backup plan

Facing legal headwinds, the Trump administration is already exploring alternative pathways to keep its protectionist trade agenda intact.

As per Bloomberg, officials are weighing options under other laws , most notably Section 232 of the Trade Expansion Act and Section 301 of the Trade Act of 1974, both of which have been used before to target imports on national security or unfair trade grounds.

Section 232, in particular, has formed the backbone of Trump’s tariffs on steel, aluminium, and vehicles since 2017. According to Bloomberg, these tools are considered more legally durable than IEEPA, but they’re slower. Investigations can take up to 270 days, although White House insiders suggest processes may be fast-tracked.

Peter Navarro, Trump’s former trade adviser, told Bloomberg that “the Trump tariff agenda is alive, well, healthy, and will be implemented to protect you, to save your jobs and your factories.” He hinted that US Trade Representative Jamieson Greer would announce new strategies shortly. However, some Trump allies remain sceptical of the timeline.

“The idea that Trump is going to turn to plan B and do tariffs by other means has problems,” said James Lucier of Capital Alpha Partners, speaking to Bloomberg. “Yes, he will do it. But he is running out of time to get results before the midterm elections.”

Section 122, which allows temporary tariffs of up to 15 per cent for 150 days, was also discussed.

But Navarro downplayed it, citing its limited duration. Meanwhile, Section 301 remains a wildcard as it has been used before, particularly against China, and could provide broader trade tools if IEEPA is struck down for good, as per Bloomberg.

Global implications and the road ahead

The court battles come at a time when global trade remains fragile, with Trump’s April tariffs already straining relations with major economies. The initial ruling would have voided levies on imports from key partners like China, Canada, and Mexico and, as Bloomberg noted, blocked nearly two-thirds of the administration’s tariffs.

With this legal uncertainty in play, trading partners are watching closely. If Trump is forced to unwind tariffs, the US may lose bargaining power in ongoing negotiations over market access and manufacturing policy.

For now, Trump’s legal team remains defiant, promising to escalate the fight all the way to the Supreme Court if needed. But as analysts warn, hastily reintroducing tariffs through other channels could open the door to more lawsuits — unless the process is rock-solid.

“If Trump jumps through the hoops and does all the paperwork for Section 232 tariffs, then he may have tariffs that are legally sustainable,” Lucier told Bloomberg. “But if he rushes it, the same anti-tariff forces will take him to court again.”

The court’s decision has bought Trump time, but not clarity. As legal battles escalate and the 2026 midterm clock ticks louder, the future of America’s aggressive trade policy hangs in the balance.