The U.S. government can keep collecting a 10% worldwide tariff imposed in February as legal challenges unfold. This decision came from the Court of Appeals for the Federal Circuit in Washington, which ruled in favor of the Trump administration, stating that their argument is ‘likely to succeed on the merits.’
These tariffs, initiated by President Donald Trump, followed a Supreme Court ruling that nullified wider tariffs introduced last year. The new tariffs rely on Section 122 of the Trade Act of 1974, allowing for tariffs up to 15% for 150 days without congressional approval. These tariffs are designed to address ‘fundamental international payments problems.’ The administration argues this includes trade deficits, measured as the discrepancy between U.S. exports and imports.
There was a contrasting decision by a three-judge panel from the Court of International Trade in New York. Last month, it ruled the tariffs unauthorized after small businesses challenged them legally. Two judges found that Trump exceeded the tariff authority granted by Congress under the relevant law, declaring the actions ‘invalid.’
As the legal process continues, the Supreme Court might eventually review the case to address these differing judicial opinions.
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