The U.S. Court of Appeals for the Federal Circuit has issued a temporary stay on a recent ruling that declared the 10% global tariffs imposed under Section 122 of the Trade Act of 1974 unlawful. This administrative pause enables the continuation of these tariffs while the court reviews an expedited appeal filed by the current administration.
Earlier this month, the U.S. Court of International Trade ruled that the tariffs were invalid but limited its order to two small businesses and the state of Washington, blocking enforcement of the tariffs only against those plaintiffs. The Justice Department opposed extending the ruling nationwide during the appeal, warning that an immediate cessation would disrupt trade negotiations and strain governmental resources, particularly amid ongoing refund processing linked to previous tariffs struck down by the Supreme Court.
The tariffs, originally imposed during President Donald Trump’s tenure, have become a significant point of contention. Government attorneys argued that reversing the Section 122 tariffs now would prompt a surge of litigation from thousands of importers currently subject to these levies, potentially overwhelming the trade court. This concern underpins the appeal and the request to maintain the tariffs’ enforcement during the judicial review process.
Advocates for the plaintiffs reacted critically to the stay, highlighting the ongoing financial burden for small businesses that have already paid tariffs deemed unlawful and are still fighting to recoup their losses. The Liberty Justice Center emphasized that the temporary pause prolongs uncertainty and economic hardship for these businesses.
Meanwhile, related litigation addresses the refund process for earlier tariffs imposed under a separate emergency economic powers law, which the Supreme Court invalidated. Customs authorities have launched a new online portal to manage refund claims, with approximately $35.5 billion processed so far in refunds and interest. This contrasts with the roughly $166 billion in tariffs collected from importers under that initial round before the Supreme Court ruling.
The cases shaping this legal landscape include Oregon v. Trump and Burlap and Barrel Inc. v. Trump, both pending before the U.S. Court of International Trade. The appellate court has set a rapid briefing schedule, requiring both sides to file arguments within weeks, underscoring the urgency of resolving the dispute over the legitimacy and enforcement of the Trump-era tariffs.