NEW YORK (VINnews) – A U.S. appeals court has temporarily stayed a lower court’s ruling that struck down President Trump’s 10% global tariffs, meaning the duties remain in place for most importers while the legal challenge proceeds.

The development follows a May 7 decision by a split three-judge panel of the U.S. Court of International Trade, which ruled 2-1 that the Trump administration lacked authority under Section 122 of the Trade Act of 1974 to impose the across-the-board tariffs. The majority called the levies “invalid” and “unauthorized by law,” siding with small businesses that sued.

The tariffs, imposed in late February as a temporary measure after the Supreme Court struck down broader “Liberation Day” tariffs earlier this year, apply to imports from nearly all countries and are set to expire in late July unless extended by Congress. The lower court’s ruling blocked collection only for the plaintiffs — a narrow group of small businesses and the state of Washington — while leaving them intact for others.

The Trump administration quickly appealed and sought an emergency stay. The U.S. Court of Appeals for the Federal Circuit granted the pause, allowing the tariffs to continue during the appeals process.

Legal experts say the case could head back to the Supreme Court, adding another chapter to the ongoing battle over presidential tariff authority. The administration has defended the move as a necessary response to trade imbalances, while critics argue it exceeds congressional limits on executive power.

The 10% surcharge was enacted under a rarely used provision allowing temporary import duties of up to 15% for up to 150 days to address international payments issues. It followed the high court’s February ruling that the president could not use the International Emergency Economic Powers Act (IEEPA) for sweeping tariffs.

VINnews will continue to monitor the appeals process and any potential impact on businesses and consumers.