June 12, 2026

U.S. Court Permits Continued Collection of 10% Tariff Amid Legal Disputes

The U.S. government is allowed to keep collecting the 10% global tariff it initiated in February while ongoing legal challenges are addressed. This decision was made by a federal court on Thursday.

The U.S. Court of Appeals for the Federal Circuit in Washington has provided a procedural advantage to the Trump administration. The court concluded that the administration’s case has a strong likelihood of success.

The controversy involves temporary 10% worldwide tariffs that President Donald Trump implemented. This follows a Supreme Court decision in February that overturned more extensive tariffs imposed the previous year on nearly every country worldwide. The new tariffs, introduced under Section 122 of the Trade Act of 1974, are scheduled to expire on July 24.

Section 122, never before used to justify import taxes, permits the president to impose global tariffs of up to 15% for 150 days. Beyond this period, congressional approval is required for any extensions. This section aims to address what it terms “fundamental international payments problems.” The dispute focuses on whether this language includes trade deficits, described as the difference between the U.S.’s exports and imports, as argued by the Trump administration.

Last month, a split decision from a three-judge panel of the Court of International Trade in New York declared the 10% global tariffs illegal following a lawsuit by small businesses. The trade court ruled 2-1 against Trump, asserting that he overstepped the authority granted by Congress under the law. The majority opinion stated that the tariffs were both “invalid” and “unauthorized by law.”

This case may proceed to the Supreme Court for further consideration.

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