According to Reuters, the U.S. Court of Appeals for the Federal Circuit ruled on Thursday, June 11 that the U.S. government may continue collecting a 10 percent global baseline tariff implemented in February while legal proceedings are ongoing. The decision marks a procedural victory for the Trump administration in defending its trade policy authority.
The ruling effectively suspends a prior injunction issued by the U.S. Court of International Trade (CIT). In its opinion, the appeals court stated: “We conclude that the federal government has made a sufficient showing that it is likely to succeed on the merits.”
The panel of judges held that maintaining a block on the tariff at this stage could cause irreparable harm to the execution of national trade policy. The court also noted that if the tariffs are ultimately found unlawful, the government could mitigate harm to affected companies by issuing refunds with interest.
The central dispute in the case concerns Section 122 of the Trade Act of 1974. This provision authorizes the president to impose tariffs of up to 15 percent in response to serious balance-of-payments deficits. The Trump administration argues that the 10 percent across-the-board tariff is a key measure to encourage manufacturing to return to the United States and to exert necessary pressure on trading partners, Reuters reported.
The 10 percent tariff was introduced in February as an alternative policy after the Supreme Court overturned the original “Liberation Day tariffs.” The appeals court’s interpretation of the statute was more expansive, suggesting that the lower court’s conclusion that the president had exceeded his authority may have been too narrow.
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The lawsuit was brought by more than 20 state governments, including Oregon and Washington, along with several small businesses. The plaintiffs’ representative, Sara Albrecht, executive director of the Liberty Justice Center, expressed concern that the injunction was not upheld, but noted that Thursday’s order was procedural rather than a final ruling. The plaintiffs said they will continue pursuing the case.
Under current policy, the 10 percent global tariff is scheduled to expire on July 24. Although the appeals court is currently allowing the government to continue collecting the tariff, its ultimate legality remains to be decided in a future final ruling. Legal experts say the case involves key questions about executive authority in international economic affairs and is highly likely to be further appealed to the U.S. Supreme Court.
