Trump Administration's 10% Global Tariffs Face Federal Appeals Court Stay

On May 12, the Federal Circuit issued an administrative stay, pausing the Court of International Trade’s ruling that Section 122 tariffs are unlawful. The stay covers three importers (two businesses and Washington state, which paid duties through University of Washington) and gives them seven days to contest a longer pause. The Trump administration appealed.

New York Post

President Donald Trump proclaimed a 10 percent tariff under Section 122 of 1974 Trade Act in February 2026, after Supreme Court invalidated most of 2025 tariff regime. The administration cited trade and current-account deficits as basis. An IEEPA-based program was also ruled unconstitutional earlier in 2026.

Trump administration appeals court ruling that declared tariffs unconstitutional

Customs collected $8 billion in Section 122 duties in March 2026. More than 170,000 importers have paid deposits covering the tariffs on 13 million entry records since February. The IEEPA-based program generated $107 billion in revenue between February and July 2025, subject to possible reimbursement.

Trump administration appeals court ruling that declared tariffs unconstitutional

The Justice Department warned that letting lower-court ruling stand would “severely undermine” trade agenda and flood courts with claims. U.S. Trade Representative Jamieson Greer called levies “critical” for keeping trade partners engaged. Commerce Secretary Howard Lutnick said tariffs are “only global baseline currently restraining an unprecedented spike in import flows”.

US asks to keep collecting Trump’s 10% global tariffs as it appeals court’s rulingNew York Post

Liberty Justice Center and We Pay the Tariffs coalition argue Section 122 tariffs are unlawful and that refunds will never make affected companies whole. Sara Albrecht stressed need for stability, predictability, and reliance on rule of law for businesses.

US asks to keep collecting Trump’s 10% global tariffs as it appeals court’s ruling

The Federal Circuit’s stay expires on October 14, 2025, but a pause is not set. Section 122 revenue beyond the reported $8 billion for March is undisclosed. $107 billion IEEPA-based duties depend on a Supreme Court review, leaving reimbursement prospects uncertain.

Trump administration appeals court ruling that declared tariffs unconstitutional

• “will never make these companies whole” — Sara Albrecht, CEO, Liberty Justice Center

US asks to keep collecting Trump’s 10% global tariffs as it appeals court’s ruling

• “The Court of International Trade correctly ruled that the Section 122 tariffs are unlawful,” — Sara Albrecht, CEO, Liberty Justice Center

US asks to keep collecting Trump’s 10% global tariffs as it appeals court’s ruling

• “Greer said that the levies are “critical” to keeping trade partners engaged in negotiations.” — Jamieson Greer, U.S. Trade Representative

US asks to keep collecting Trump’s 10% global tariffs as it appeals court’s ruling

• “the only global baseline currently restraining an unprecedented spike in import flows while the administration continues to address the United States’ balance of payments issues” — Howard Lutnick, Commerce Secretary

US asks to keep collecting Trump’s 10% global tariffs as it appeals court’s ruling

If the Federal Circuit does not extend the stay, the administration will seek an emergency stay from the Supreme Court. Section 122 tariffs expire in July 2026 unless Congress extends them. A Supreme Court decision on the IEEPA duties is expected before the October 14, 2025 stay ends, potentially deciding the fate of $107 billion in revenue.

Trump administration appeals court ruling that declared tariffs unconstitutional