Trump Administration Appeals Trade Court Ruling on 10% Global Tariffs

The Trump administration appealed a federal trade court ruling on Friday that found the president's 10% across-the-board tariff on most imports exceeded his legal authority. The Court of International Trade sided with 24 states and businesses that filed a lawsuit challenging the tariff imposed by President Trump in February under Section 122 of the Trade Act of 1974.

A three-judge panel determined that the temporary Section 122 tariffs were unlawful and harmful to businesses.

The 10% global tariff remains in place pending appeal. The Court of International Trade ruling this week applies only to a narrow subset of the plaintiffs consisting of two businesses and the state of Washington. The trade court's decision offers limited relief to importers despite marking the second major judicial rebuke to Trump’s tariff policies in the last few months.

The ruling follows the Supreme Court decision in February that struck down Trump’s sky-high tariffs imposed on “Liberation Day” last year. The Supreme Court ruled in February that Trump lacked authority under the International Emergency Economic Powers Act to impose those earlier sweeping tariffs.

The struck-down tariffs included country-by-country rates imposed to combat the illicit sale of drugs and those imposed on a “reciprocal” basis in response to trade imbalances.

The administration has begun the work to refund the money collected under the struck-down tariffs, which totals around $166 billion. S. government owes importers an estimated $175 billion in tariff refunds, plus interest, because of the Supreme Court ruling.

The first refund checks for the struck-down tariffs are expected to arrive as soon as Monday. U.S. Customs and Border Protection has launched a portal where importers can submit refund claims. Refund claims for the struck-down tariffs open Monday with up to $127 billion that could flow back to importers.

Section 122 tariffs are due to expire on July 24 unless Congress approves an extension. Section 122 of the Trade Act of 1974 only allows the president to impose a temporary 10% duty for 150 days. S.

2% according to Capital Economics. The CIT ruling leaves that rate unchanged for most businesses. Following the Supreme Court defeat, Trump invoked Section 122 as an alternative legal mechanism, imposing replacement tariffs.

The Trump administration in March announced investigations into foreign nations' trade practices under Section 301 of the Trade Act of 1974. The administration has opened investigations into the trade practices of dozens of countries under Section 301. The administration has begun using Section 232 to apply tariffs to products like cars and steel on national security grounds.

President Trump said this week: “We always do it a different way. ” Trump sharply criticized the latest ruling, blaming 'two radical left judges' for the decision. White House spokesman Kush Desai said the Trump administration is reviewing legal options and maintains confidence in prevailing.

U.S. tariff is narrow in scope, offering limited relief to importers. The decision reinforces that Section 301 is the tool the administration is most likely to rely upon moving forward.