Trump administration seeks to maintain 10% global tariffs during appeal
The Trump administration has asked a federal trade court to pause a ruling that invalidated President Donald Trump's 10% global tariffs, warning that thousands of importers could challenge the levies if the decision takes effect more broadly.
The Trump administration has asked the US Court of International Trade to pause a ruling that invalidated President Donald Trump's 10% global tariffs, warning that allowing the decision to stand would severely undermine the president's trade agenda while the government pursues an appeal. In a 2-1 decision last week, the court ruled that Trump's use of Section 122 of the Trade Act of 1974 to impose the levies was invalid, though the order immediately blocked enforcement only for two companies that filed the case and Washington state.
The Justice Department warned that thousands of importers currently paying the tariffs could bring similar claims if the ruling takes effect more broadly, potentially diverting resources from an ongoing effort to refund a previous round of global tariffs that the US Supreme Court struck down earlier this year. Government lawyers said the administration has appealed the decision to the US Court of Appeals for the Federal Circuit and is prepared to seek emergency relief from the Supreme Court if both lower courts refuse the pause.
Section 122 interpretation
The dispute centers on the administration's use of Section 122, which allows temporary import restrictions under certain balance-of-payments conditions. The trade court rejected the argument that "balance-of-payments deficits" should be interpreted broadly to include trade and current account deficits, finding that Trump's proclamation failed to identify the specific type of deficits required under the 1974 law.
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Revenue and timeline
The 10% tariffs took effect in February and are set to expire in July, with more than 170,000 importers having paid deposits covering Section 122 tariffs on 13 million entries of goods since the proclamation took effect, according to the government. US customs authorities collected approximately $8 billion in Section 122 tariffs during March alone, according to government data analyzed by We Pay the Tariffs, a coalition of small businesses.
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