U.S. appeals court keeps Trump's 10% global tariff in force for three importers
A U.S. appeals court is extending a temporary block on a lower court ruling against the Trump administration's 10% global tariff, allowing the duties to remain in place for three importers. The order keeps tariff collections going while the government's appeal proceeds and preserves a trade measure imposed after most 2025 Trump tariffs were struck down.
Highlights
- The Federal Circuit appeals court allows continued collection of the 10% global tariff from two small businesses and the state of Washington amid ongoing litigation.
- The 10% tariff, imposed in February under Section 122 of the Trade Act of 1974 following a Supreme Court ruling, remains enforced for the affected importers.
- The tariff is set to expire in July unless extended by Congress, leaving near-term trade costs and planning subject to court and legislative developments.
Appeal keeps tariff collections active
As reported by Reuters, the Federal Circuit appeals court on Thursday extends its block on the trade court decision and allows the U.S. to keep collecting the tariff from the three importers covered by the case.The affected parties are two small businesses and the state of Washington, which paid tariffs on purchases by the University of Washington. They had won relief in the lower court, but the administration appealed and the appeals court on May 12 temporarily let collections resume.
The U.S. trade court ruled against the new tariffs on May 7, though it did not broadly halt their collection beyond the plaintiffs in the case. The latest order means the narrower reprieve remains suspended while the appeal is heard.
Section 122 timetable and trade impact
The 10% global tariff was imposed in February under Section 122 of the Trade Act of 1974, after the U.S. Supreme Court struck down most of the tariffs Trump imposed in 2025.The measure is scheduled to expire in July unless Congress extends it. For importers still subject to the duty, the appeals court's decision maintains added costs and leaves short-term trade planning tied to both the court process and possible congressional action.
In our earlier coverage of Canada’s push to preserve the USMCA ahead of a key renewal deadline, we highlighted Ottawa’s shift to a more conciliatory tone as the Trump administration signaled it might not renew the pact. We noted warnings from U.S. officials against retaliation tied to U.S. tariffs and emphasized the scale of cross-border trade at stake, with prolonged negotiations a risk if the agreement is not extended.
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