WASHINGTON, D.C. — A federal appeals court has ruled that the Trump administration may continue collecting its 10% global tariff while litigation over the policy’s legality moves forward, handing President Donald Trump a temporary victory in a closely watched trade dispute.
The decision by the U.S. Court of Appeals for the Federal Circuit pauses an earlier ruling from the Court of International Trade, which found that the administration likely exceeded its authority when imposing the tariffs. The appeals court concluded that blocking the duties while the case proceeds could cause irreparable harm to the federal government.
The tariffs were imposed in February under Section 122 of the Trade Act, a provision that allows presidents to respond to balance-of-payments problems by imposing temporary trade restrictions. The measure authorizes tariffs of up to 15% for a period of 150 days before congressional approval is required. The current 10% tariffs are scheduled to expire on July 24 unless additional action is taken.
The legal challenge was brought by a coalition of more than 20 states led by Oregon, along with several small businesses. Plaintiffs argue that the administration exceeded the powers granted by Congress and that the tariffs were imposed without proper legal justification.
Businesses challenging the policy have argued that the tariffs increase costs on imported goods, reduce profits, and create uncertainty for companies that rely on global supply chains. Many economists have noted that tariffs are often passed on to consumers through higher prices, though the extent varies by product and market conditions.
The appeals court emphasized that its ruling addresses only whether the tariffs may remain in effect during litigation and does not determine whether the administration ultimately acted lawfully. The case is expected to continue through the federal courts and could eventually reach the Supreme Court.
Sources:
Discover more from News Facts Network
Subscribe to get the latest posts sent to your email.
