Relief for Trump as US Appeals Court Pauses Ruling Against 10% Global Tariff

US President Donald Trump secured a significant legal reprieve on Tuesday after a federal appeals court temporarily paused a lower court ruling that had declared his sweeping 10% global tariff unlawful.

The decision allows the contested duties to remain in effect while the case moves through the judiciary.

The US Court of Appeals for the Federal Circuit issued an unsigned administrative stay of last week’s ruling by the Court of International Trade, effectively placing the matter on hold to give an appeals panel time to weigh arguments from both sides before deciding whether to suspend the tariffs during the full appeal.

The ruling marks the latest development in a turbulent legal battle over the administration’s trade agenda.

Trump introduced the 10% import levy after the Supreme Court struck down an earlier, broader set of tariffs he had justified under the International Emergency Economic Powers Act (IEEPA). In that case, the court ruled that IEEPA does not authorise the president to impose blanket tariffs.

Undeterred, Trump turned to a different legal mechanism — Section 122 of the US Trade Act of 1974, a provision never previously used — to impose a 10% across-the-board surcharge set to expire on July 24. The law permits the president to impose temporary tariffs of up to 15% for up to 150 days to address “large and serious” balance-of-payments deficits.

However, the trade court found that such a deficit condition does not currently exist, noting that a balance-of-payments deficit is distinct from a trade deficit — a distinction acknowledged by the administration in court.

The appeals court emphasised that it has not ruled on the merits of Trump’s appeal and is still considering whether to grant a longer-term stay pending full proceedings. The administration argued that lifting the tariffs prematurely could trigger a surge in imports, leading to economic disruption.

Businesses and the state of Washington now have seven days to oppose any further extension of the stay granted in favour of the lower court’s ruling.

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