The U.S. government can continue to impose the 10% worldwide tariff that was set in February. This decision comes as legal challenges against these tariffs proceed through the courts. A federal court ruling on Thursday upheld the ability of the U.S. to maintain these tariffs.
The Court of Appeals for the Federal Circuit in Washington granted a procedural victory to the Trump administration. The court concluded that the Administration’s case stands a strong chance of succeeding based on its merits.
The controversy centers on temporary 10% global tariffs that President Donald Trump implemented. These followed the Supreme Court’s decision in February to overturn broader tariffs imposed last year on nearly all countries. The new tariffs were invoked under Section 122 of the Trade Act of 1974. These tariffs have a timeline set to expire on July 24.
Section 122, used here for the first time, permits the president to enforce tariffs of up to 15% worldwide for 150 days. Beyond this period, Congress must approve any extension. This section addresses issues related to “fundamental international payments problems.” The dispute challenges whether this terminology applies to trade deficits, notably the imbalance between U.S. imports and exports, as the Trump administration asserts.
Last month, a three-judge panel from the Court of International Trade in New York delivered a split decision. The panel found the 10% global tariffs to be illegal. The court’s majority held that Trump exceeded the tariff authority delegated by Congress. The court declared the tariffs “invalid” and “unauthorized by law.”
It’s possible that this case could advance to the Supreme Court.