Overview
- The U.S. Court of Appeals for the Federal Circuit issued an administrative stay Tuesday, pausing the trade court’s injunction and allowing U.S. Customs to keep collecting the 10% surcharge during the appeal.
- The U.S. Court of International Trade ruled 2–1 on May 7 that the tariff proclamation under Section 122 was unlawful because it cited trade and current‑account gaps rather than a required “large and serious” balance‑of‑payments deficit.
- The trade court’s injunction was limited to two importers and Washington state, so most companies must continue paying, a group that government data says includes more than 170,000 importers since February.
- The administration appealed and filed statements from U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick saying lifting the surcharge now would undercut negotiations and trigger a surge in imports.
- The surcharge, which Section 122 allows for up to 150 days, is set to expire around July 24 unless Congress extends it.