US Appeals Court Pauses Ruling Blocking Trump’s 10 Percent Global Tariff

On Tuesday the appeals court issued an administrative stay while the case continues. The lower court had ruled that the tariff did not meet the legal criteria under Section 122 of the 1974 Trade Act. Trump imposed the 10 percent import tax in January.

The move followed a Supreme Court decision that struck down an earlier set of tariffs justified under the International Emergency Economic Powers Act. The Supreme Court had ruled that the earlier law did not authorize blanket tariffs. On Friday a three-judge panel at the US Court of International Trade voted two to one that the president had not satisfied the required conditions under Section 122.

” The appeals court decision gives the White House time to respond to the lower court ruling. A coalition of 24 states has challenged the tariff as an abuse of executive power. The states have also cited higher costs passed on to consumers and businesses.

A consumer price index report released on Tuesday showed increases in several categories. Prices for apparel and electronics each rose 0.6 percent while costs for toys and furniture increased 0.8 percent. The states argue these rises reflect the impact of the tariff.

122 the 10 percent global tariff is scheduled to expire in July unless Congress acts to extend it. Its duration is otherwise limited to 150 days. The legal challenge represents one of several obstacles facing the tariff policy. Critics have noted the uncertainty created by potential reversal of the tariffs.

Separately, refunds have begun on tariffs previously imposed under the International Emergency Economic Powers Act. US Customs and Border Protection anticipates issuing $35.46 billion in refunds on 8.3 million shipments processed as of Monday. The case centers on whether the tariff falls within the scope of presidential authority under the 1974 law.

The appeals court’s temporary stay leaves the tariff in place for now while litigation proceeds.