Trump's tariff plan is temporarily reinstated while a court considers a White House appeal - one day after a federal court blocked the US's trade levies
White House advisor Peter Navarro says the Trump administration is ready to take its appeal to the Supreme Court, adding: "even if we lose, we will do it another way"
This comes a day after three judges ruled Trump overstepped his authority in imposing global tariffs, and gave the White House 10 days to halt the import taxes
In response, White House Press Secretary Karoline Leavitt said "we will win this battle in court" and the administration is working to "tackle rogue judges"
The federal appeals court's decision has given the Trump administration a temporary victory - although it may be short-lived, writes our reporter in Washington
Image source, Getty ImagesThe bell has rung in today's opening of the New York Stock Exchange.
That means we'll soon have a clear idea on how the stock market is reacting to the court's ruling blocking key parts of Donald Trump's tariffs plans.
A little earlier on, the UK-based FTSE 100 opened to gains, but flattened out as news of the judgement settled in.
The opening bell of the New York Stock Exchange is set to ring at 09:30 local time (14:30 BST).
We'll soon see how US markets are reacting to the court ruling that blocks President Donald Trump's tariff plan.
We'll be following any developments here - but you can also follow along by clicking watch live at the top of this page.
Stick with us.
Image source, Getty ImagesWho brought the case?
The court combined two separate claims into one judgement.
Firstly, this involved a selection of private companies, such as Terry Precision Cycling and Genova Pipe. Secondly, the court also heard from a number of US states - including Oregon and New York.
The companies allege that they are suffering economic injuries because of the tariffs while the various states involved are suing Trump's administration for "direct financial harm" due to the added import costs they face.
What was under discussion?
As the court document sets out, Donald Trump declared several national emergencies and consequently imposed various tariffs since his return to the White House.
Rather than seeking congressional approval to raise these new taxes, he's done so through an executive order. The court was asked to assess whether Trump can impose these tariffs under the International Emergency Economic Powers Act (IEEPA).
This law hands presidents broad authority to respond to extraordinary threats that originate outside the US.
What was the verdict?
Here's the crucial bit: The court determined that Donald Trump's tariff orders "exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs".
"IEEPA does not authorize any of the Worldwide, Retaliatory, or Trafficking Tariff Orders," the judgement reads.
And, the court rules out simply giving a remedy to the claimants alone, explaining: "If the challenged Tariff Orders are unlawful as to Plaintiffs they are unlawful as to all".
Jonathan Josephs
BBC business reporter
Image source, PA MediaThis court ruling is certainly a blow to President Trump but it's unlikely to stop his broader plans to address what he sees as unfair trade practices.
And remember it doesn’t remove all tariffs – they’ll still be imposed on cars, steel, aluminium and other products that have gone through a different legal process.
The businesses and states whose cases were ruled on as well as the US government are adamant they are in the right so this judgement is likely to be decided by the Supreme Court.
That can take months - which will add to the uncertainty for any company that either buys from or sells to America or for American companies themselves.
The threat of further tariffs and other trade restrictions hasn't gone away because there are several other legal options available to President Trump.
He has an experienced team of trade lawyers, including the US Trade Representative, Jamieson Greer, who have been planning his trade policy for some time and are likely to have their next moves already planned out.
Ben Hatton
Live reporter
Image source, Getty ImagesWhat are the tariffs?
Broadly speaking, Trump has increased tariffs in three ways:
What has the court ruled?
It has effectively blocked the first two - the blanket 10% and fentanyl-related tariffs - arguing that it was not a legally valid move to use the emergency powers Trump cited when implementing them.
What happens now?
Experts are still grappling with what the implications will be. The ruling gives the Trump administration 10 days to take the steps needed to comply with the decision.
But the White House says it's appealing the ruling, meaning it will go to a higher court.
By Daniel Wainwright, data journalist - BBC Verify
The US has collected more than $40 billion in border duties since tariffs took effect, according to the Department of the Treasury - a record amount.
If the White House's appeal against the ruling blocking many tariffs is not successful, a big chunk of that will need to be refunded.
As the chart below shows, April and May saw the level of duties collected hit at least more than double the average since 2020.
Duties on cars, aluminium and steel are not impacted by the ruling, but the sweeping so-called reciprocal tariffs unveiled by Trump - 10% across the board for most countries and 30% for China - have been rendered legally void.
If higher courts do uphold Wednesday’s ruling after the White House appeals, that could be a hefty bill for the US government.
Tommy Lumby
Business data journalist
The chart below shows how US investors have reacted positively so far to the court ruling on Trump’s tariffs.
Futures are agreements to buy or sell stocks at a set price in the future, so these movements provide an indication of what could happen when US markets open later today.
The Nasdaq-100, S&P 500 and the Dow Jones all rose after the announcement.
We'll bring you analysis when the New York stock exchange opens at 14:30 BST.
The Trump administration has been critical of the judiciary in the wake of this decision.
Republican Stephen Miller, one of Trump's closest White House aides, says "the judicial coup is out of control" - while White House spokesperson Kush Desai says it's "not for unelected judges to decide how to properly address a national emergency".
Yesterday's ruling came from the Court of International Trade, a highly specialised court based in New York.
It was a unanimous decision reached by three judges: one appointed to the court by Barack Obama, one by Ronald Reagan, and one by Trump during his first term in office.
In Delta, a town of around 3,000 people in the state of Ohio, support for Donald Trump and his tariff policies is significant - and the US president's arguments about fairness resonates.
Last month, the BBC spoke to people in Delta about why they want the import taxes to come into force.
Mary Miller, manager of the Delta Candy Emporium, told the BBC that the US needs an "even playing field" on trade and she is not concerned about the possibility of price rises.
"Sometimes you have to walk through fire to get to the other side," she said.
"If tariffs bring companies and business back to hard-working American people like the ones who live here, then it's worth it."
You can read more of Mike Wendling's report from Delta here - and we'll be reaching out to Trump voters today about the most recent developments.
The court ruling on tariffs means more "uncertainty" for trade negotiations between the US and a number of countries, the International Chamber of Commerce's (ICC) secretary general warns.
"It just puts a whole cloud over the top of any negotiation with the US because it's unclear what the US is negotiating and what their position will be from a legal standpoint," Chris Southworth tells BBC News.
As a result, Southworth suggests that countries will now be "reluctant" to enter into new negotiations with the US.
He says it is "likely" there will be "pauses" in ongoing negotiations while Trump's administration battles the court ruling.
"You can't really take on the tariff issue if you don't really know if those tariffs will exist," he says.
It's been a little while since we talked tariffs, so you're forgiven if what you're reading this morning has left you scratching your head.
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Graham Fraser
Technology reporter
Image source, Bloomberg via Getty ImagesTrump's tariffs have been a major headache for any US company with a global supply chain. Many tech firms fall into that category, with one in particular in the spotlight: Apple.
China, which has been hardest hit by the tariffs, is vital to Apple’s manufacturing process.
Apple responded to the original tariffs announcement by saying it was shifting production of devices bound for the US market to India and Vietnam.
Trump responded by saying they had missed the point: he imposed the tariffs to ensure companies based their work in the US, creating jobs there and increasing tax revenues.
That means iPhones built by American workers, for American workers - even though experts warned that would also mean much higher prices.
In February, Apple committed to invest more than $500bn (£371bn) in the US over the next four years - a move which the president claimed was in response to his trade policies.
That has not been enough for Trump though: only last week he warned Apple he would impose tariffs on iPhones not manufactured in America.
That threat has now receded - few, though, would argue it has disappeared.
Vishala Sri-Pathma
Business reporter
The FTSE 100 is broadly flat now, erasing much of the gains seen when markets opened a couple of hours ago.
In the past, we’ve seen tariff news impact the share prices of miners, banks and energy companies as they’re the sectors most exposed to global economic developments.
Investors are watching the US dollar, which is currently up 0.1% against a basket of leading currencies, says Kathleen Brooks, research director at the broker XTB.
“Sell the dollar was one of the biggest ‘tariff trades’, so now that tariffs are in jeopardy, an unwind of this position is to be expected. However, for now, the focus is on a recovery in USD/JPY, and losses in the euro and the pound versus the dollar have been minimal so far.”
Image source, ReutersHope for a favourable ruling from a higher court
Trump looks set to appeal the ruling through the courts, a route which will see the government first take the case to the US Court of Appeals for the Federal Circuit in Washington, DC.
It could ultimately go to the US Supreme Court, which is already considering other cases about the scope of presidential power.
Shift the legal basis for reciprocal tariffs
The tariffs court ruling said Trump can't use emergency powers to impose them - but it seems to signal other ways he might have more success.
The judges note that another law passed by Congress in 1974 gives presidents authority to impose 15% tariffs for 150 days in cases of “large and serious” trade deficits and unfair trade practices.
His administration will also be looking at why import taxes on steel and aluminium, which were introduced under a separate laws from the 1960s, have survived this ruling.
Find an off-ramp and back down
Halting a centrepiece economic policy, one Trump has been vocal about since the 1980s, is the most unlikely path.
His book The Art of The Deal makes clear his belief you should always fight on in negotiations, and there are no signs he will back down any time soon.
Vishala Sri-Pathma
Business reporter
Image source, Nur Photos via Getty ImagesFor businesses exporting to the US, the situation remains a complex one.
As of March 2025, the US imposed a 10% blanket tariff on all UK goods, alongside sector-specific 25% tariffs on steel, aluminium and automotive imports.
However, earlier this month, the UK and the US announced an agreement to cut tariffs on some cars and steel, the details of which are still being hashed out.
Yesterday's court ruling in the US only applies to the blanket 10% tariffs.
Businesses have told us that the introduction of tariffs has meant they’ve had to re-think supply chains and navigate higher costs.
What today’s news means for exporters isn’t entirely clear – some analysts are interpreting it as a temporary reprieve, while others see it as added uncertainty.
Image source, Tom Brenner for The Washington Post via Getty ImagesOregon's attorney general thinks the case could end up at the Supreme Court
Oregon is one of the states which brought the case against the tariffs. Its attorney general Dan Rayfield has been speaking to BBC Radio 4's Today programme.
He says the basis for the court decision is because "the president has misused an emergency power... that no president in the history of the US has ever used to try and implement tariffs".
He adds the ruling is "incredibly significant" because all three judges ruled unanimously against the government.
The next stage will see the case taken to a federal circuit court in Washington DC - and Rayfield anticipates the government will appeal all the way to the Supreme Court if needed.
He says that he felt compelled to bring this lawsuit because of the "impact it has to everyone".
Image source, Getty ImagesA former senior economic adviser to Donald Trump has warned that no president should have the authority to set tariff rates without approval from Congress.
"Congress is the one that’s supposed to make the laws and to change the tax policies," Stephen Moore, who was an economic advisor to Trump's first presidential campaign, tells the BBC Radio 4's Today programme.
He accepts the ruling might be detrimental to the US in its trade talks with the EU and says he is a big Trump supporter, but adds: "I think it's dangerous for the country to have any president assert the authority to impose taxes on American citizens."
"It's not a healthy thing for the president to have that kind of unilateral authority," he adds.
Asked about the recently agreed UK-US trade deal, Moore says he hopes Keir Starmer will "go along with the deal as it has been agreed to".
Simon Jack
Business editor
Image source, Richard Martin-Roberts/Getty ImagesJaguar Land Rover's (JLR) first take on today's developments is that it doesn't change anything for them.
As things stand, JLR is paying 27.5% tariffs on everything they ship to the US and it is costing them "a huge amount of money", as they are the importer as well as the exporter.
The company is frustrated that the new deal agreed in early May, which will reduce tariffs on cars to 10% up to a quota of 100,000 vehicles, is taking so long to come into effect.
We've just had a short response to the latest trade developments from the US from the UK government.
It says the decision to block Donald Trump's sweeping tariffs is a domestic matter for the US.
A government spokesperson adds that they "note this is only the first stage of legal proceedings".
A statement goes on: “We were the first country to secure a deal with the US in a move to protect jobs across key sectors, from autos to steel, and we are working to ensure that businesses can benefit from the deal as quickly as possible.”
Image source, PA MediaTrump's tariffs: The president has raised import duties on the UK in two ways: a 10% blanket rate on almost all goods entering the US implemented in April, and industry-specific 25% tariffs on steel, aluminium and cars.
The deal to reduce them: Under an agreement announced earlier this month, a set number of British cars and some steel and aluminium will be allowed to enter the US tariff free. In return, the UK will reduce tariffs on certain US products, including beef and ethanol.
The 10% blanket tariff on most goods entering the US from the UK will remain.
But the exact terms, including when the tariff reductions will be implemented, are still unclear. As yet, the outline of the agreement announced is non-binding.
What now: This latest court ruling impacts only the blanket tariff of 10%, which has been applied to almost every country.
If that is removed, only the industry-specific tariffs will remain, meaning there will still be much focus on the deal intended to reduce these.
Cars are the UK's largest goods export to the US, at £8.3bn in the year to September 2024, according to government figures.