U.S. Appeals Court Allows 10% Tariff to Continue Until July 24, 2026

On Thursday, the Court of Appeals for the Federal Circuit issued a ruling that keeps the United States collecting a 10% worldwide tariff on certain imports until July 24, 2026, despite a district court decision that found the measures illegal.

The tariffs were instituted in February by the Trump administration under Section 122 of the Trade Act of 1974, a provision that had never before been invoked to impose import taxes. The section allows the president to levy worldwide tariffs of up to 15% for 150 days, after which congressional approval is required for continuation. The current 10% rate is intended to address what the administration calls “fundamental international payments problems,” a phrase that includes trade deficits between the U.S. and other countries.

In March, a panel from the specialized Court of International Trade in New York ruled 2‑1 that the 10% tariffs were unauthorized and beyond the president’s powers. That ruling was a setback for the administration’s trade strategy. However, the federal appeals court gave the administration a procedural win by determining that its case was likely to succeed on the merits, allowing the tariffs to stay in place while litigation continues.

The legal journey has moved through multiple courts, and the appeal may ultimately reach the Supreme Court. In the meantime, Washington will continue to collect the 10% tariff as the nationwide policy stands until the statutory expiration date of July 24, 2026.