U.S. Appeals Court Temporarily Suspends Effect of Lower Court Ruling Declaring '10% Global Tariff Invalid'

U.S. Appeals Court Temporarily Suspends Effect of Lower Court Ruling Declaring '10% Global Tariff Invalid'

A higher court has temporarily halted the U.S. Court of International Trade (CIT) ruling that the 10% global tariff imposed by the Donald Trump administration is invalid.

According to Reuters, the U.S. Court of Appeals for the Federal Circuit on the 12th (local time) temporarily suspended the effect of the CIT's ruling that the 10% global tariff imposed by the Trump administration under Section 122 of the Trade Act is illegal.

On the 7th, the CIT ruled that Section 122 of the Trade Act was not designed to resolve the U.S. trade deficit, and thus the Trump administration's 10% global tariff based on Section 122 of the Trade Act was illegal. The Trump administration appealed the next day.

After the U.S. Supreme Court ruled in February that imposing reciprocal tariffs based on the International Emergency Economic Powers Act (IEEPA) was illegal, the Trump administration first imposed a 10% global tariff based on Section 122 of the Trade Act as a way to introduce 'alternative tariffs'. As this tariff could only be maintained for 150 days until late July, the Trump administration plans to ultimately fill the void of reciprocal tariffs by introducing new tariffs after an investigation under Section 301 of the Trade Act.