Overview
- The U.S. Court of Appeals for the Federal Circuit ruled Thursday that the temporary 10% worldwide tariff may remain in effect while lower-court rulings are appealed.
- The tariff was adopted after the Supreme Court in February struck down broader IEEPA-based tariffs and the administration turned to Section 122 of the Trade Act of 1974 as an alternate authority.
- A split 2-1 decision by the U.S. Court of International Trade on May 7–8 found the Section 122 tariffs unlawful for the plaintiffs in that case, and the Department of Justice appealed the next day.
- Customs has continued to collect the duty for most importers and reported large monthly receipts, for example about $8 billion in March from related entries, and the tariff is set to expire on July 24 unless extended.
- The core legal question about presidential power under Section 122 remains unresolved and could reach the Supreme Court, with possible refunds or reliquidations for importers if courts eventually strike the tariffs down.