Appeals court allows Trump to keep collecting 10% tariff

A federal appeals court has allowed the Trump administration to keep collecting its 10% global tariff while the legal fight continues, preserving the levy for now after a lower trade court said it was unlawful.

The U.S. Court of Appeals for the Federal Circuit’s ruling means importers must keep paying the tariff unless the order changes, the levy expires, or the case ends differently later in the litigation. The decision keeps billions of dollars in tariff collections flowing for now.

The panel said the administration is likely to succeed on the merits, according to Associated Press coverage of the ruling. It also said that if the tariff is ultimately invalidated, refunds with interest would be available.

What the ruling does

The decision does not settle whether the tariff is legal. It changes the immediate collection status and keeps the 10% charge in force while the case proceeds.

For importers, the practical effect is straightforward: the payments continue. For the federal government, the ruling preserves a major revenue stream while the legal challenge works through the courts.

The tariff remains in place even though a lower trade court had already ruled against it. That keeps the policy and the money attached to it in effect until the appeals process produces a final answer or the tariff expires on its own.

How the case got here

Trump imposed the 10% global tariff in February 2026 under Section 122 of the Trade Act of 1974 after earlier tariffs were struck down by the Supreme Court.

Section 122 allows tariffs of up to 15% for 150 days without congressional approval. The current tariff is scheduled to expire on July 24, 2026, unless it is extended or replaced.

On May 7, a three-judge panel of the Court of International Trade ruled the tariff unlawful and unauthorized by law. That ruling set up the appeal that led to the Federal Circuit’s June 11 decision.

The legal challenge was brought by two importer plaintiffs, including small businesses, and a coalition of 24 states. The case has become a test of how far the executive branch can go under Section 122.

The legal stakes

The core dispute is whether Section 122’s reference to “fundamental international payments problems” covers the administration’s justification based on trade deficits.

That question matters beyond this one tariff. It goes to the scope of presidential tariff authority and whether the administration can continue using the same legal framework to defend the duty.

The appeals court’s stay means the collection question is separate, for now, from the final merits question. The government can keep collecting while the judges consider whether the tariff itself is lawful.

If the administration ultimately loses, the panel said refunds with interest would be available. That makes the case financially significant for importers that have been paying the duty and for the government that has been collecting it.

What comes next

The next procedural step could be expedited briefing or oral argument at the Federal Circuit, although the research packet does not indicate that has already been scheduled.

The plaintiffs could also seek emergency relief from the Supreme Court.

The approaching July 24 expiration date adds another possible turning point. The administration could try to extend or replace the tariff before then, but no such move is confirmed in the research packet.

For now, the appeals court ruling keeps the 10% tariff in place, preserves collections, and leaves the underlying legality unresolved.