A federal appeals court is allowing President Donald Trump to collect his temporary 10% global tariffs for now while the legal challenges against the trade levies proceed through the judicial system.In a Thursday ruling, the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., concluded the Trump administration‘s case in defense of its Section 122 tariffs was “likely to succeed on the merits.”Under the Trade Act of 1974, Section 122 permits tariffs up to 15% for 150 days. The import taxes expire on July 24.
Last month, the U.S. Court of International Trade determined the Trump administration lacked the legal standing to impose tariffs under the Trade Act and blocked further implementation of the new tariffs against small businesses that acted as plaintiffs in the case. The court allowed the tariffs to remain in place through July for all other importers not involved in the litigation.
That ruling marked another setback for the federal government after the Supreme Court struck down Trump’s “Liberation Day” tariffs.
In February, the high court deemed tariffs enacted under the International Emergency Economic Powers Act to be illegal. The decision prompted Trump to invoke the Trade Act for his new 10% tariffs.
