NEW YORK, June 11 - A federal appeals court on Thursday extended a temporary stay that effectively blocks a lower court decision challenging the Trump administration's 10% global tariff under Section 122 of the Trade Act of 1974. The extension means three importers who had won a temporary reprieve will continue to face the duty while the government pursues its appeal.
The ruling, handed down by the U.S. Court of Appeals for the Federal Circuit, permits the U.S. government to keep collecting the 10% tariff on imports tied to the three parties named in the lower court action. Those three include two small businesses and the state of Washington, which had paid the tariff on purchases linked to the University of Washington.
Background on the legal sequence is limited in public filings, but the case has proceeded through several steps in recent weeks:
- The U.S. trade court issued a ruling on May 7 that was against the new 10% tariffs, though that decision did not broadly prevent the government from collecting the duties.
- The Trump administration appealed the trade court's May 7 ruling.
- On May 12, the Federal Circuit temporarily allowed tariffs to resume for the three importers who had prevailed in the lower court.
- On June 11, the appeals court extended that temporary allowance, keeping tariff collections in place for those three entities while the appeal remains pending.
The 10% global tariff at the center of the litigation was put into effect in February after the U.S. Supreme Court struck down most of the tariffs the administration had imposed in 2025. These latest duties were implemented under Section 122 of the Trade Act of 1974.
Officials and parties in the case are awaiting further proceedings in the appeals process. Absent congressional action, the 10% global tariff is scheduled to expire in July. The appeals court's extension leaves the tariff collections intact for the three importers until the higher court resolves the legal challenge or until the tariff authority lapses.
The available record shows the immediate practical effect of the appeals court decision is limited to the three named importers; the trade court's May 7 decision was not a broad injunction halting tariff collections across the board. The extended stay therefore preserves government collections for those parties while leaving open the broader legal resolution on the merits of the trade court ruling.
Clear summary
The Federal Circuit extended a stay on a lower court decision, allowing the U.S. government to continue collecting a 10% global tariff from three importers - two small businesses and the state of Washington on University of Washington purchases - while an appeal proceeds. The tariff was imposed in February under Section 122 of the Trade Act and is set to expire in July unless Congress extends it.