- Federal appeals court allowed continued collection of 10% Section 122 tariffs during litigation.
- The temporary tariffs remain effective until their scheduled expiration on July 24.
The United States Court of Appeals for the Federal Circuit in Washington ruled on June 11 that the Trump Administration may continue collecting 10% Section 122 tariffs while ongoing legal challenges proceed through the judicial system. The decision represents a procedural victory for the administration, allowing the temporary trade measures to remain in effect as courts continue evaluating their legality. The ruling provides short-term certainty for importers and businesses affected by the duties, while broader debates over U.S. trade authority and tariff implementation continue to evolve.
The appellate court's decision overturned a recent order from the Court of International Trade, which had previously determined that the Section 122 tariffs were unlawful. By reversing that ruling at this stage of the proceedings, the appeals court restored the government's ability to maintain tariff collections until further legal determinations are made. The case highlights ongoing disputes regarding executive authority in trade policy and the interpretation of statutory provisions governing emergency tariff measures.
Section 122 tariffs were imposed under the provisions of the Trade Act of 1974, which allows temporary trade actions under specific circumstances. However, these measures have a limited duration and can remain enforceable for no more than 150 days. As a result, the current tariffs are scheduled to expire on July 24 unless replaced by alternative trade actions authorized under different legal frameworks.
The tariffs were initially announced in February following legal developments involving earlier global tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Those IEEPA-based tariffs had been ruled unlawful by the U.S. Supreme Court, prompting the government to pursue alternative mechanisms for maintaining trade restrictions. The latest court ruling allows the administration additional time as it works on establishing new tariff structures under separate trade laws.
Frequently Asked Questions
What are Section 122 tariffs?
Section 122 tariffs are temporary trade measures authorized under the Trade Act of 1974 that allow the U.S. government to address balance-of-payments issues and trade concerns. These tariffs can only remain in effect for up to 150 days, making them short-term policy tools rather than permanent trade barriers. Governments may use them while developing broader trade strategies or negotiating alternative measures. Their temporary nature distinguishes them from other tariff authorities available under U.S. trade law.
Why did the court allow the tariffs to continue?
The Court of Appeals for the Federal Circuit allowed the tariffs to remain in effect while legal challenges continue through the judicial process. This decision temporarily overturned an earlier ruling that had deemed the tariffs unlawful. The court's action does not represent a final judgment on legality but preserves the government's authority to collect the duties during litigation. The ruling provides temporary continuity for trade policy until courts issue final decisions.
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