A federal appeals court has granted the Trump administration a temporary reprieve in its battle to maintain its broad tariff policies, pausing a lower court’s ruling that deemed the tariffs illegal. This development provides a crucial breathing room for President Trump as he fights to preserve a cornerstone of his economic agenda. The initial ruling, which questioned the legality of his use of emergency powers, had sent ripples through financial markets.

The New York-based Court of International Trade had ruled that Trump’s tariff orders “exceed any authority granted to the president,” arguing that his reliance on the International Emergency Economic Powers Act (IEEPA) was an overreach. The court clarified that its judgment was not on the effectiveness of tariffs, but on whether they were legally applied in the first place.

The White House is expected to appeal this decision vigorously, potentially all the way to the Supreme Court. The ongoing legal dispute highlights the constitutional checks and balances on presidential power and the judiciary’s role in interpreting the scope of executive authority, especially in matters of trade.