A federal appeals court has allowed President Donald Trump to continue collecting 10% global tariffs while legal challenges to the levies proceed. The U.S. Court of Appeals for the Federal Circuit in Washington, D.C., ruled Thursday that the Trump administration’s case in defense of its Section 122 tariffs was “likely to succeed on the merits.” The tariffs, imposed under the Trade Act of 1974, are set to expire on July 24 unless Congress extends them.
Immediate Action & Core Facts
The ruling allows the Trump administration to collect the tariffs while the legal challenges continue. The tariffs were imposed after the Supreme Court struck down broader tariffs last year. The Court of International Trade had previously ruled the tariffs illegal, but the appeals court allowed them to remain in place for now.
Deeper Dive & Context
Legal Background
The tariffs were imposed under Section 122 of the Trade Act of 1974, which permits tariffs of up to 15% for 150 days. The Trump administration argues the tariffs address “fundamental international payments problems,” including trade deficits. Critics, including small businesses that sued to stop the tariffs, contend the administration overstepped its authority.
Opposing Views
The Court of International Trade ruled 2-1 that the tariffs were “invalid” and “unauthorized by law.” The appeals court’s decision allows the tariffs to continue while the legal battle continues. The case could eventually reach the Supreme Court.
Policy Implications
The tariffs are set to expire on July 24 unless Congress extends them. Trump had previously threatened to increase the tariff rate to 15%, but the new rate was set at 10%. The tariffs have been a contentious issue, with supporters arguing they protect U.S. industries and critics saying they harm small businesses and global trade relations.