Court Allows Trump Administration to Keep 10% Global Tariff Amid Appeal

A U.S. appeals court has granted the Trump administration a temporary reprieve, allowing it to continue enforcing a 10% global tariff. The decision on Thursday extends a suspension of a lower court's ruling that had declared the broad levy illegal. This allows the government to maintain the tariff while its broader appeal proceeds, preventing an immediate halt to the measure.

The tariff was initially imposed by President Donald Trump in February, shortly after the Supreme Court overturned most of his previous general tariffs. The administration views these tariffs as a key component of its economic policy. In May, the U.S. Court of International Trade had prohibited the tariffs for a small group of plaintiffs, prompting the government's appeal.

The Federal Circuit Court of Appeals had previously granted a temporary stay of that order, which was extended on Thursday. The appeals court indicated that the federal government had sufficiently demonstrated it was likely to succeed on the merits of its case. The 10% tariff, implemented under Section 122 of the Trade Act of 1974, is scheduled to expire at the end of July unless Congress intervenes to extend it. The Trump administration is reportedly already working on plans to implement more durable tariffs by that deadline.