What’s next for Trump’s tariffs amid legal back and forth

Geoff Bennett:

President Trump's sweeping tariffs remain in place tonight for now after a day of legal whiplash. But the ultimate fate of many of those tariffs is unclear after a series of court decisions.

Amna Nawaz:

Two federal courts, including a special Court of International Trade, ruled against many of the president's tariffs, saying they were illegal and that the president did not have the specific authority that he cited to impose them.

But those decisions are on hold after a separate appellate court issued a stay this afternoon. That court told the administration and a coalition of states and businesses who sued that it would hear arguments early next month.

Stephanie Sy begins with this report.

Karoline Leavitt, White House Press Secretary:

Last night, the Trump administration faced another example of judicial overreach.

Stephanie Sy:

Today, the Trump administration is fighting back after a federal court ruling that could upend its tariff policy.

Karoline Leavitt:

America cannot function if President Trump or any other president, for that matter, has their sensitive diplomatic or trade negotiations railroaded by activist judges.

Stephanie Sy:

Foreign leaders, on the other hand, applauded the decision.

Mark Carney, Canadian Prime Minister:

The government welcomes yesterday's decision by the U.S. Court of International Trade, which is consistent with Canada's longstanding position that the U.S. IEEPA tariffs were unlawful, as well as unjustified.

He Yongqian, Chinese Commerce Ministry Spokesperson (through interpreter):

China urges the U.S. to heed the rational voices of the international community and its domestic stakeholders, and to completely eliminate the unilateral imposition of additional tariffs.

Stephanie Sy:

Generally, the president has imposed tariffs in three main categories, 10 percent tariffs on almost every country, higher tariffs for Canada, Mexico and China, and industry-specific tariffs, including an additional 25 percent rate on steel, aluminum and cars.

Were it not for the circuit court's stay today, last night's ruling would have blocked the first two, in addition to tariffs Trump had threatened to issue on dozens of other countries, the U.S. has trade deficits with.

Donald Trump, President of the United States: Our country and its taxpayers have been ripped off.

Stephanie Sy:

Trump bypassed Congress and implemented them by executive order, arguing that he has the power to do so under the 1977 International Emergency Economic Powers Act, or IEEPA.

He justified this by saying the trade deficit and fentanyl crisis, which he blames on Mexico, Canada and China, pose a national emergency. But a panel of judges on the U.S. Court of International Trade appointed by Presidents Reagan, Obama and Trump overruled the president last night, writing the orders — quote — "exceed any authority granted to the president by IEEPA."

It also says the orders on fentanyl don't deal directly with the fight against drug trafficking, but instead — quote — "aim to create leverage to deal with those objectives."

National Economic Council Director Kevin Hassett responded this morning.

Kevin Hassett, Director, National Economic Council:

The idea that the fentanyl crisis in America is not an emergency is so appalling to me that I'm sure that, when we appeal, that this decision will be overturned.

Stephanie Sy:

Today, the Circuit Court of Appeals paused the Court of International Trade's ruling, even while another federal court ruled against the tariffs.

Mary Lovely, Peterson Institute for International Economics: This certainly puts a bit of a snarl into President Trump's current approach.

Stephanie Sy:

Mary Lovely is a senior fellow at the Peterson Institute for International Economics. She says there are other ways the president could still impose his tariffs if the ruling stays in effect.

Mary Lovely:

This is an ongoing saga, and the longer it goes, the more debilitating it is, I think the more we risk turning companies off from investing in the U.S.

Stephanie Sy:

All this as revised GDP numbers indicate the U.S. economy shrank in the first quarter of 2025. It diminished at a 0.2 percent annual pace, the first drop in three years, brought down by a surge in imports, as U.S. companies hurried to bring in foreign goods ahead of the new tariffs, tariffs whose fate is now uncertain.

For the "PBS News Hour," I'm Stephanie Sy.