A U.S. appeals court extended a freeze on a lower court’s ruling on Thursday, allowing the Trump administration to keep collecting a 10% global tariff while a legal battle plays out.
Trump introduced the tariff in February, shortly after the Supreme Court struck down several of his earlier duties targeting multiple international trading partners. Following the move, the U.S. Court of International Trade issued an injunction in May that blocked the 10% levy for a select group of plaintiffs, prompting an immediate appeal from the administration.
The U.S. Court of Appeals for the Federal Circuit initially granted a temporary pause on the trade court’s block, which it officially extended on Thursday.
Explaining its decision, the panel noted that the administration had met the necessary legal thresholds to maintain the status quo.
“the federal government has made a sufficient showing that it is likely to succeed on the merits,”
Implemented under Section 122 of the Trade Act of 1974, the 10% tariff is scheduled to expire at the end of July unless extended by Congress.
Meanwhile, the Trump administration is already laying the groundwork to introduce new, more permanent trade measures before the deadline arrives.