A federal appeals court has put on hold a lower court decision that had ruled President Donald Trump’s latest tariffs unlawful, allowing the duties to stay in place while the case continues to be litigated.

The move follows a request by the Trump administration to pause last week’s ruling by the U.S. Court of International Trade, which had found that the government did not have the legal authority to impose a 10% global tariff under Section 122 of the Trade Act of 1974.

With the appeals court granting a temporary stay, the tariffs will continue to be collected as judges consider whether to extend the pause for the duration of the appeals process. The administration is seeking a swift decision as it works to preserve the policy.

The lower court ruling had been seen as a significant challenge to Trump’s broader tariff strategy. Earlier this year, the Supreme Court struck down several tariffs enacted under emergency economic powers, prompting the administration to rely on Section 122 to implement temporary tariffs across a wide range of imports.

Judges on the trade court concluded that the administration’s interpretation of Section 122 went beyond what Congress intended, stating that the provision was meant to address severe balance-of-payments crises rather than general trade deficits.

The case was brought by a group of importers, along with the State of Washington, who argued that the tariffs were unlawful. The court’s decision applied specifically to those plaintiffs, rather than issuing a nationwide block.

The Trump administration has defended the tariffs as a necessary tool to counter trade imbalances and support domestic industries, while critics argue the policy represents an overreach of executive authority into an area typically governed by Congress.

The outcome of the case is being closely watched by businesses and importers, given the significant financial impact of the tariffs. Previous court rulings against similar measures have already led to large refund obligations tied to collected duties.

Legal analysts expect the dispute to continue through the federal court system, with the possibility that it could ultimately return to the Supreme Court as challenges to the administration’s trade policies persist.

{Matzav.com}