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Appeals court says U.S. government can
keep collecting 10% tariffs for now
[June 12, 2026]
By PAUL WISEMAN
WASHINGTON
(AP) — The U.S. government can continue collecting the 10% worldwide
tariff it imposed in February while legal challenges to the levies
continue to work their way through the courts, a federal court ruled
Thursday. |
President Donald Trump is pictured during an event where he signs a
proclamation about the fishing industry, in the Oval Office of the White
House, Thursday, June 11, 2026, in Washington. (AP Photo/Jacquelyn
Martin) |
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The
Court of Appeals for the Federal Circuit in Washington decision
handed a procedural win to the Trump administration, concluding
that its case was “likely to succeed on the merits.’’
At issue are temporary 10% worldwide tariffs President Donald
Trump imposed after the Supreme Court in February struck down
even broader double-digit tariffs the president had imposed last
year on almost every country on Earth. The new tariffs, invoked
under Section 122 of the Trade Act of 1974, are set to expire
July 24.
Section 122, which had never been used to justify import taxes
before, allows the president to impose worldwide tariffs of up
to 15% for 150 days, after which congressional approval is
needed to extend them.
Section 122 is aimed at what it calls “fundamental international
payments problems.’’ In dispute is whether that wording covers
trade deficits — the gap between what the U.S. sells other
countries and what it buys from them — as the Trump
administration contends.
A split three-judge panel of the specialized Court of
International Trade in New York last month found the 10% global
tariffs were illegal after small businesses sued to stop them.
The trade court ruled 2-1 that Trump overstepped the tariff
power that Congress had delegated to the president under the
law. The tariffs are “invalid″ and “unauthorized by law,” the
majority wrote.
The case could be headed to the Supreme Court.
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