Appeals Court Lets Trump’s 10 Percent Global Tariffs Remain in Place During Legal Fight

by Emmitt Barry, Worthy News Washington D.C. Bureau Chief

(Worthy News) – The U.S. Court of Appeals for the Federal Circuit on June 11 temporarily allowed President Donald Trump’s 10 percent global tariffs to remain in effect, extending a pause on a lower court ruling that had struck down the duties as unlawful.

In an unsigned order, the appeals court granted the Trump administration’s request to keep the injunction on hold while the appeal proceeds. The decision means the federal government may continue collecting the tariffs under Section 122 of the Trade Act of 1974 for the time being.

The dispute centers on a temporary 10 percent value-based import duty that applies on top of existing tariffs on most goods entering the United States from countries around the world.

On May 7, the U.S. Court of International Trade ruled 2–1 against the Trump administration, siding with small businesses and several states that challenged the tariff policy. The majority found that the president exceeded the authority granted under the statute, calling the tariffs “invalid” and “unauthorized by law.” The court issued a permanent injunction blocking the government from collecting the duties from Washington state and two companies involved in the lawsuit.

A dissenting judge argued that the case was premature and should not have been decided at that stage.

The challengers argued that the administration used Section 122 as a way to sidestep a prior U.S. Supreme Court ruling that struck down tariffs Trump had imposed under the International Emergency Economic Powers Act.

Trump’s order imposing the latest tariffs relied on Section 122, which permits the president to impose duties for up to 150 days to address serious “balance of payments deficits” or an imminent depreciation of the U.S. dollar.

The federal government defended the policy by pointing to what it described as a major balance-of-payments problem, citing a $1.2 trillion annual U.S. goods trade deficit and a current account deficit equal to 4 percent of gross domestic product.

After the trade court ruling, the Trump administration appealed. On May 12, the Federal Circuit issued an administrative stay, temporarily putting the lower court decision on hold without ruling on the merits of the case.

The June 11 order goes further, granting a formal stay while the appeal is pending.

“Without prejudicing the ultimate disposition of these consolidated appeals by a merits panel, we conclude based upon the papers submitted that a stay is warranted under the circumstances,” the court said.

The case now moves forward before the Federal Circuit, where the broader question remains whether the president’s use of Section 122 to impose sweeping global tariffs falls within the authority Congress granted under the Trade Act of 1974.

For now, the administration has secured a significant legal reprieve, allowing its tariff policy to remain in place while the courts consider the limits of presidential power over trade.

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