Nicolai Haugsted
Prices remain high after latest ruling.
A legal battle over one of Donald Trump’s key trade policies remains far from over, but the administration has secured another important win along the way.
A federal appeals court has decided to keep a lower court ruling on hold, allowing the United States government to continue collecting Trump’s 10% global import tariff while the broader case moves through the judicial system.
The decision affects a small group of plaintiffs who had previously succeeded in challenging the tariffs.
Tariffs Remain in Place
According to Reuters, thursday’s ruling from the U.S. Court of Appeals for the Federal Circuit means that three importers must continue paying the duties for now, despite having won a favorable ruling earlier this year.
A trade court ruled against the tariffs on May 7, finding in favor of two small businesses and the state of Washington, which had challenged the payments connected to purchases made by the University of Washington.
That victory proved short-lived.
Days later, the Trump administration appealed the decision, prompting the appeals court to temporarily suspend the lower court’s ruling. Thursday’s decision extends that suspension while the legal challenge continues.
Policy Introduced After Supreme Court Setback
Trump’s current 10% tariff regime was introduced in February following a major defeat at the U.S. Supreme Court.
The high court struck down most of the tariffs imposed during 2025, forcing the administration to pursue a different legal path.
Officials responded by invoking Section 122 of the Trade Act of 1974, a provision that grants presidents limited authority to impose temporary import restrictions under specific circumstances.
That authority became the legal foundation for the new global tariff program.
Businesses Continue Challenge
The legal dispute centers on whether the administration properly used Section 122 when imposing the duties.
Attorneys representing the importers argue that the government exceeded its authority, while administration lawyers maintain that the tariffs fall within powers granted by Congress.
Because the appeals court has not yet ruled on the substance of the case, Thursday’s decision does not settle the dispute. Instead, it preserves the status quo until judges issue a final judgment.
Clock Ticking on Future of Tariffs
Another factor could ultimately determine the policy’s fate.
Current law allows the 10% tariff to remain in effect only through July unless Congress takes action to extend it.
That means lawmakers may soon find themselves weighing in on a trade measure that has already sparked court fights, political debate, and renewed questions about the limits of presidential authority in economic policy.
For now, importers challenging the duties remain subject to the tariffs, while the Trump administration gains additional time to defend one of its most prominent trade initiatives.
