A U.S. federal appeals court has issued an administrative stay, temporarily halting a lower court’s decision that declared President Donald Trump’s 10% global tariffs unlawful. This allows the Trump administration to continue collecting the tariffs while the legal process unfolds.
The U.S. Court of Appeals for the Federal Circuit granted the stay to give itself time to consider the government’s request to suspend the U.S. International Trade Court’s ruling during the appeals process. The lower court had ruled the tariffs illegal after a coalition of 24 states and two importing companies filed a lawsuit. The tariffs were imposed under Section 122 of the Trade Act of 1974, following a previous set of global tariffs that were overturned by the Supreme Court in February.
The administrative stay means the tariffs remain in effect for now, but the legal battle continues. The appeals court is also reviewing a longer suspension of the trade court’s decision. This development adds another layer of uncertainty to U.S. trade policy and its potential impact on global markets.