A federal appeals court ruled Thursday that the U.S. government can continue collecting the 10% worldwide tariffs imposed in February while legal challenges proceed, delivering a procedural victory to the Trump administration.
The U.S. Court of Appeals for the Federal Circuit in Washington said the government is “likely to succeed on the merits,” allowing the tariffs to remain in effect as the case moves through the courts.
The dispute centers on temporary global tariffs imposed by President Trump after the Supreme Court in February struck down broader double-digit tariffs issued last year on nearly all countries. The current levies, set under Section 122 of the Trade Act of 1974, are scheduled to expire on July 24 unless extended with congressional approval.
Section 122 allows the president to impose worldwide tariffs of up to 15% for 150 days in response to what it defines as “fundamental international payments problems.” The administration argues that includes trade deficits, the gap between U.S. imports and exports.
A split three-judge panel of the Court of International Trade in New York had ruled last month that the tariffs were unlawful, siding with small businesses that challenged them. The court found 2–1 that the president exceeded delegated tariff authority, calling the measures “invalid” and “unauthorized by law.” The appeals court decision effectively pauses the lower trade court’s ruling, signaling the government is likely to prevail on appeal.
