A U.S. federal appeals court has temporarily paused a lower court ruling that blocked President Donald Trump’s 10% global tariff, allowing the legal dispute surrounding the policy to move forward. The temporary administrative stay, issued on Tuesday, gives the court additional time to review the legality of the tariff while the White House prepares its response.
The central issue in the case is whether the tariff, introduced under Section 122 of the 1974 Trade Act, falls within the limits of presidential authority. The provision allows temporary trade actions under specific economic conditions, but critics argue the administration did not meet the legal standards required to impose the broad import measure.
Trump introduced the sweeping 10% tariff in January after the U.S. Supreme Court struck down an earlier set of tariffs that had been implemented under the International Emergency Economic Powers Act (IEEPA). The Supreme Court ruled that the law did not provide authority for blanket tariffs, prompting the administration to pursue a new legal pathway.
However, the latest tariff policy quickly faced legal scrutiny. Last week, a panel at the U.S. Court of International Trade ruled 2-1 that the administration failed to satisfy the conditions required under Section 122. The court stated that the presidential proclamation did not demonstrate that the necessary legal criteria had been met and ruled that the tariffs imposed on plaintiffs were unauthorized by law.
Tuesday’s appeals court decision temporarily pauses that ruling, preventing immediate changes to the tariff policy while the legal process continues. The decision does not resolve the broader case but allows the administration more time to defend the measure.
A coalition of 24 states challenging the tariffs has argued that the policy represents an overreach of executive authority and has created additional financial pressure for consumers and businesses. Washington State Attorney General Nick Brown said American consumers and companies have ultimately absorbed the added costs of the tariff measures.
Economic data released on Tuesday also highlighted potential impacts on consumer prices. A consumer price index report showed apparel and electronics prices both increased by 0.6%, while toy and furniture prices rose by 0.8%, adding to concerns about inflationary pressures tied to import costs.
The tariff policy also faces a separate timeline challenge. Under Section 122, the 10% global tariff is scheduled to expire in July unless Congress approves an extension. The law limits such trade actions to a maximum of 150 days.
Meanwhile, U.S. Customs and Border Protection said refunds related to previously overturned tariffs are already being processed. The agency expects to return approximately $35.46 billion across 8.3 million shipments that had been processed as of Monday.
The case remains closely watched by businesses, trade groups, and policymakers as uncertainty around U.S. trade policy continues.
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