A federal appeals court has permitted President Donald Trump to temporarily collect a 10% global tariff while legal challenges against the trade levies are ongoing. The U.S. Court of Appeals for the Federal Circuit in Washington, D.C., ruled that the Trump administration's defense of its Section 122 tariffs is likely to succeed. Under the Trade Act of 1974, Section 122 allows tariffs of up to 15% for a period of 150 days, with the current import taxes set to expire on July 24.
Previously, the U.S. Court of International Trade ruled that the Trump administration did not have the legal authority to impose these tariffs, blocking their implementation for small businesses involved in the case but allowing them to remain for other importers. This ruling followed a Supreme Court decision that struck down Trump's previous tariffs under the International Emergency Economic Powers Act. Trump subsequently invoked the Trade Act for the new tariffs.
Although Trump had threatened to raise the tariff rate to 15%, the implemented rate remains at 10%. The case may eventually reach the Supreme Court, and the Section 122 tariffs are set to expire next month unless Congress decides to extend them.