Appeals court lets Trump keep 10% global tariffs in place temporarily

Importers kept paying Donald Trump’s 10% global tariff after the U.S. Court of Appeals for the Federal Circuit extended a stay that preserves the duties while the case works through the courts. For now, that means the government can keep collecting tariff revenue and companies must still plan around the added cost, whether they are moving goods through supply chains, setting prices or waiting for relief that may not come soon.

The stay affects only three plaintiffs: two private companies and the state of Washington. Washington had paid tariffs on University of Washington purchases, a reminder that the case has touched not just large multinational firms but also smaller buyers caught in the same customs net. The Federal Circuit first issued an administrative stay on May 12, then extended it on June 11, keeping the tariff in place during the appeal.

The underlying fight began when the U.S. Court of International Trade ruled on May 7 that the Section 122 tariff was unlawful. A legal summary of that decision described it as a 2-1 ruling by a three-judge panel, with the court finding that Section 122 was meant to address balance-of-payments deficits, not the trade and investment deficits cited by the administration. The ruling did not broadly stop the tariff nationwide, but it did give the three plaintiffs a basis to challenge the charge.

Trump imposed the 10% global tariff by proclamation on February 20, 2026, setting it to take effect on February 24 at 12:01 a.m. Eastern. The White House said the duty would last 150 days and could be extended by Congress. The proclamation also carved out a long list of exemptions, including critical minerals, energy products, pharmaceuticals, certain electronics, certain vehicles, aerospace products and USMCA-compliant goods from Canada and Mexico.

The legal clash has immediate business consequences because tariffs feed directly into landed costs and working capital needs. It also carries broader political weight: Trump keeps a central trade tool in place for now, even after the U.S. Supreme Court struck down most tariffs he imposed in 2025. More than 75,000 companies had already filed refund claims over those earlier duties, a sign of how fast tariff litigation can move from courtroom arguments to balance sheets.