US President Donald Trump's administration has secured a crucial legal victory after a federal appeals court ruled that a nationwide 10 per cent tariff on imports can remain in place while a broader legal battle over the measure continues.
The decision by the US Court of Appeals for the Federal Circuit extends a temporary suspension of an earlier ruling by the US Court of International Trade, which had found the tariff unlawful and blocked its enforcement against a group of challengers.
By maintaining the pause, the appeals court effectively allows the Trump administration to continue collecting the tariff as it seeks to overturn the lower court's decision.
In its ruling on Thursday, AFP cited the court saying: "the federal government has made a sufficient showing that it is likely to succeed on the merits," among the factors considered in deciding to extend the stay.
The case centres on Trump's decision to impose a universal 10 per cent tariff in February after a Supreme Court ruling invalidated a range of duties previously applied to several trading partners.
The tariff was enacted under Section 122 of the Trade Act of 1974, a provision that grants the president limited authority to address trade imbalances through temporary import restrictions.
The Court of International Trade subsequently ruled in May that the administration had exceeded its authority, preventing enforcement of the tariff against a select group of plaintiffs. The Trump administration immediately appealed the decision, arguing that the measure was both lawful and necessary to protect US economic interests.
Thursday's ruling marks an important interim victory for the White House, preserving one of Trump's signature trade tools while the appellate process unfolds.
The decision also provides breathing space for administration officials who are working to replace the temporary levy with a broader and more durable tariff regime.
The current 10 per cent duty is scheduled to expire in late July unless Congress authorises an extension. Anticipating that deadline, the administration has already begun laying the groundwork for a new set of tariffs designed to withstand future legal challenges and maintain pressure on foreign exporters.
The outcome of the appeal could have far-reaching implications for presidential trade powers, determining the extent to which future administrations can impose broad-based tariffs without direct congressional approval.
For now, however, the ruling ensures that Trump's global tariff strategy remains intact, preserving a key element of his economic agenda as the legal dispute moves towards a final determination. - June 12, 2026
