US appeals court sides with Trump in 10% tariff dispute, extends block on lower court ruling

The decision

The U.S. Court of Appeals for the Federal Circuit extended its temporary stay on a Court of International Trade ruling that had blocked President Trump's 10% global tariff, meaning the duty remains collectible while litigation proceeds. The unsigned order came from a three-judge panel and was issued on 11 June 2026.

“The government has shown a likelihood of success on the merits.”

The appeals court noted both sides had presented compelling arguments, but the administration would suffer irreparable harm if the tariffs were suspended only to be reinstated later.

Background

Trump imposed the 10% levy on most foreign imports on 24 February 2026, invoking Section 122 of the Trade Act of 1974. This provision, never before used to justify import taxes, allows the president to impose global tariffs of up to 15% for 150 days without congressional approval. The current tariffs are set to expire on 24 July.

The move followed a Supreme Court ruling earlier that year that struck down the higher, double-digit tariffs Trump had imposed in 2025 on nearly all trading partners. Section 122 authorises duties to address “fundamental problems of international payments,” which the administration argues covers trade deficits.

The lower court ruling

In early May, the Court of International Trade in New York ruled 2-1 that the 10% tariff was illegal, finding Trump had exceeded the delegated tariff powers. The majority wrote the duties were “invalid” and “not authorised by law.” That decision was immediately challenged, and the appeals court first stayed it shortly afterward, a step reaffirmed this week.

Plaintiffs include the state of Washington and two small businesses, as well as three importers who had initially won a reprieve from the duties.

Legal reasoning and next steps

Under Section 122, the president’s authority is limited to 150 days, after which Congress must approve any extension. The core legal dispute is whether the phrase “fundamental problems of international payments” encompasses trade deficits. The appeals court found the administration’s position sufficiently strong to justify keeping the tariffs in place for now.

The case may ultimately reach the Supreme Court. A notice from the appeals court indicated that once a final ruling on the merits is issued, either side could petition the high court. For the time being, however, American businesses importing goods from abroad will continue to pay the 10% surcharge.