A US federal appeals court has ordered a temporary stay on a lower court ruling that blocked President Donald Trump's 10% global tariff policy. The decision was issued Tuesday (US time) as an administrative pause while the case undergoes further review.
The legal dispute centers on whether the tariffs imposed under Section 122 of the Trade Act of 1974 fall within presidential authority. Trump imposed the 10% tariffs on global imports in January, after the Supreme Court rejected a broader set of tariffs he had justified under the International Emergency Economic Powers Act (IEEPA). The Supreme Court then ruled that the IEEPA does not allow a president to impose sweeping tariffs as Trump had argued.
Last Friday, a three-judge panel at the US Court of International Trade voted 2-1, ruling that Trump had not met the conditions under Section 122 to impose new tariffs. The lower court ruling emphasized: "The president's proclamation does not affirm that mandatory conditions have been satisfied," and that the proclamation is "invalid, and the tariffs imposed on the plaintiffs are unlawful."
However, on Tuesday the appeals court paused the effect of that ruling, giving the White House time to respond. The coalition of 24 states, which filed the lawsuit, argues that Trump's tariff campaign constitutes an abuse of executive power. They point to the broader impact, with consumers bearing the cost of higher tariffs. "It is American consumers and businesses who ultimately pay for the president's unlawful tariff campaign," Washington State Attorney General Nick Brown said after Friday's ruling.
A consumer price index report released Tuesday showed Trump's tariff campaign had affected consumer goods prices. Clothing and electronics prices both rose 0.6%, while toys and furniture prices increased 0.8%.
The legal challenge to Section 122 is just one of the obstacles to the president's tariff policy. Under this provision, the 10% tariff is set to expire in July unless extended by Congress, with a maximum duration of 150 days. Critics also point to the instability and difficulty of reversing such tariff measures.
Meanwhile, refunds for tariffs imposed under the IEEPA have begun. US Customs and Border Protection is expected to pay $35.46 billion in refunds for 8.3 million shipments processed as of Monday.
