Federal Appeals Court Maintains Trump 10% Tariffs During Legal Challenge

Key Details The U.S. Court of Appeals for the Federal Circuit issued an administrative stay on May 12, temporarily pausing a lower court ruling that declared President Trump's 10% global tariffs unlawful. The move allows tariff collection to continue while the administration appeals the decision. Both sides now have an expedited schedule to file briefs, with challengers due to respond within a week. Why It Matters Importers will keep paying the 10% tariffs under Section 122 of the Trade Act of 1974 during the legal process. The Justice Department argued that blocking tariffs immediately would undermine the president's economic agenda, interfere with trade negotiations, and strain resources already stretched by processing $35.5 billion in refunds from a previous tariff ruling the Supreme Court struck down. What's Next Sara Albrecht, CEO of the Liberty Justice Center, warned that the pause "creates more uncertainty for American small businesses" that have already spent a year absorbing what they claim are unlawful tariff costs. Small businesses and Democratic state officials challenging the tariffs must now navigate extended legal proceedings while continuing to pay duties. Separately, customs authorities launched an online refund portal in late April to process claims from the earlier tariff dispute.