US court suspends ruling blocking Trump’s 10% global tariffs | International trade news

A coalition of 24 states argued that Trump’s latest tariffs did not meet the standards of the Trade Act of 1974.

Published on May 12, 2026May 12, 2026

A U.S. federal appeals court has temporarily stayed a lower court’s ruling to block President Donald Trump’s 10% global tariffs.

On Tuesday, a U.S. federal appeals court issued a short-term administrative stay while the trial continues.

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At issue is whether tariffs issued under Section 122 of the Trade Act of 1974 fall within Trump’s presidential authority.

Trump imposed a 10% import tax in January, after the Supreme Court struck down another round of sweeping tariffs that the president had justified through use of the International Emergency Economic Powers Act (IEEPA).

In that case, the Supreme Court ruled that IEEPA did not authorize the president to impose blanket tariffs, as Trump had argued.

Similar questions have been raised about Trump’s new tariff policy. On Friday, a panel of the U.S. Court of International Trade ruled two to one that Trump had not met the Section 122 criteria to implement the new tariffs.

“The President’s Proclamation fails to affirm that these requirements have been met,” the lower court ruling states.

He added that the proclamation “is invalid and the tariffs imposed on plaintiffs are not authorized by law.”

Tuesday’s appeals court ruling temporarily stayed that decision, to give the White House time to respond.

But the plaintiffs — a coalition of 24 states — argued that Trump’s tariff campaign was an abuse of executive power. They also highlighted downstream effects, as consumers bear the cost of additional taxes.

“It is American consumers and businesses who ultimately paid for the president’s illegal tariff campaign,” Washington state Attorney General Nick Brown said in a statement following Friday’s ruling.

A Consumer Price Index report released Tuesday suggests that Trump’s tariff campaign has resulted in higher costs of consumer goods.

Prices of clothing and electronics rose 0.6 percent, while the cost of toys and furniture jumped 0.8 percent.

The legal challenge to the Section 122 tariffs is just one of the obstacles facing Trump’s tax policy.

Under Section 122, the 10 percent global tariff is set to expire in July unless extended by Congress. Its duration is also capped at 150 days.

Critics have also pointed to the uncertainty and regulatory challenges of rolling back these tariffs.

Tuesday’s stay comes as rates imposed under the IEPPA begin to be refunded. U.S. Customs and Border Protection expects to refund $35.46 billion on 8.3 million shipments processed Monday.

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