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Business — Trade — Economy — Legal

Appeals Court Allows U.S. To Continue Collecting 10% Tariffs

The decision allows the tariffs, imposed in February under Section 122 of the Trade Act, to remain in effect as the court reviews whether the administration acted within its legal authority.

,   and  TIPP Staff
3 min read
Appeals court says U.S. government can keep collecting 10% tariffs. Pic via(@WashTimesLocal)

A federal appeals court has ruled that the U.S. government may continue collecting a 10% worldwide tariff while legal challenges to the policy move forward, providing a temporary victory for President Donald Trump’s administration.

The decision allows the tariffs, imposed in February under Section 122 of the Trade Act, to remain in effect as the court reviews whether the administration acted within its legal authority.

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The tariffs were introduced as part of an effort to address trade imbalances and are scheduled to expire on July 24 unless additional action is taken.

The ruling follows an earlier decision by the Court of International Trade, which found that the administration had exceeded its authority in imposing the tariffs.

That case was brought by a coalition of more than 20 states led by Oregon, along with several businesses that argued the measure was unlawful and harmful to their operations.

While the appeals court permitted tariff collection to continue for now, it emphasized that the order does not determine the ultimate legality of the policy.

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Businesses challenging the tariffs have argued that the additional costs reduce profits, constrain growth, and may ultimately be passed on to consumers through higher prices.

The case is expected to remain closely watched by importers, exporters, and policymakers because of its potential impact on trade policy and executive authority.

Legal experts note that the dispute could eventually reach the Supreme Court, which may be asked to provide a final ruling on the scope of presidential tariff powers under U.S. trade law.

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