A federal appeals court issued a temporary stay on May 29, pausing an injunction from U.S. Court of International Trade that would have blocked much of President Trump's "Liberation Day" tariffs. The ruling means the tariffs remain in effect for now, reports Journal of Accountancy. If the injunction had gone into effect, it could have jeopardized an estimated $2 trillion revenue over the next decade, revenue the administration has counted on to help fund its tax cut package. 

According to a report by Accounting Today, the U.S. Court of International Trade on May 28 struck down a significant portion of the administration’s tariffs, calling into question roughly $200 billion in annual revenue and potentially leaving a $2 trillion gap over the next decade.

The tariffs have been central to offsetting the cost of Trump’s “One Big Beautiful Bill,” a tax package projected to cost $4 trillion. With spending cuts falling short of covering that cost, tariff income was expected to fill the gap. Treasury Secretary Scott Bessent warned that the ruling could disrupt not only trade policy but also federal revenue flows, stating on Fox News that “anything the courts do to get in the way… harms the American people.”

The government is currently constrained from raising new debt, and Treasury has been relying on accounting maneuvers to manage cash flow. Customs revenue hit a monthly record of $16 billion, and analysts at Barclays noted the ruling could bring forward the date the government exhausts its cash.

The legal dispute centers on the use of the International Emergency Economic Powers Act, which Trump had relied on to enact broad “Liberation Day” tariffs.