WASHINGTON — A federal appeals court ruled Thursday that the United States may continue collecting 10% tariffs on imports from around the world while ongoing legal battles over these trade levies move through the judicial system.
The Federal Circuit Court of Appeals in Washington delivered a procedural victory to the Trump administration, determining that the government’s position was “likely to succeed on the merits.”
The dispute centers on temporary 10% global tariffs that President Donald Trump put in place following a February Supreme Court ruling that struck down more extensive double-digit tariffs the president had established last year affecting nearly all nations worldwide. These current tariffs, implemented using Section 122 of the Trade Act of 1974, are scheduled to end on July 24.
Section 122, which has never before been utilized to support import duties, permits the president to establish global tariffs up to 15% for a 150-day period, after which Congress must approve any extension.
The provision targets what it describes as “fundamental international payments problems.” The central question is whether this language encompasses trade deficits — the difference between American exports to other nations and imports from them — as the Trump administration argues.
Last month, a divided three-judge panel from the specialized Court of International Trade in New York determined the 10% global tariffs were unlawful following a lawsuit by small businesses seeking to halt them. The trade court ruled 2-1 that Trump exceeded the tariff authority Congress had granted to the president under the statute. The majority opinion declared the tariffs “invalid” and “unauthorized by law.”
The matter may ultimately reach the Supreme Court.
