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A U.S. federal appeals court has extended its temporary stay on a lower court ruling that challenged the Trump administration’s 10% global tariff imposed under Section 122 of the Trade Act of 1974. The decision allows the government to continue collecting the tariff from three importers while the legal appeal moves forward.
The ruling, issued Thursday by the U.S. Court of Appeals for the Federal Circuit, affects three parties that previously secured relief from the tariff in a lower court decision. The impacted importers include two small businesses and the state of Washington, which paid import duties on purchases made by the University of Washington.
The legal dispute centers on the Trump administration’s use of Section 122 of the Trade Act to impose a broad 10% global tariff in February. The measure was introduced after the U.S. Supreme Court invalidated most of the tariffs that President Donald Trump had implemented in 2025. Supporters of the tariff argue it provides a temporary mechanism to address trade imbalances, while critics question the administration’s authority to apply such sweeping duties.
On May 7, the U.S. Court of International Trade ruled against the tariff policy, finding that the administration had exceeded its authority. However, the court’s decision did not result in a nationwide halt to tariff collection. Instead, the ruling only applied to the three importers that brought the case.
Following the trade court’s decision, the Trump administration quickly appealed. On May 12, the Federal Circuit temporarily reinstated tariff collection from the three importers pending further review. The latest order extends that relief for the government, ensuring the tariffs remain in place during the appeals process.
The case is being closely watched by businesses, importers, and trade policy experts because it could shape the future use of Section 122 tariffs and executive authority over U.S. trade policy. The 10% global tariff is currently scheduled to expire in July unless Congress takes action to extend the measure. Until then, the legal battle over the Trump tariffs is expected to remain a key issue in U.S. trade and economic policy discussions.
