U.S. asks appeals court to pause ruling that struck down 10% global tariff

The fight here is about a very plain thing — whether the White House can keep charging a 10% tax on almost everything the U.S. imports while the courts sort out whether that tax was legal in the first place. On Monday, May 11, the Justice Department asked the U.S. Court of Appeals for the Federal Circuit to pause a May 7 ruling from the Court of International Trade that said the tariff was unlawful. The administration is basically trying to keep the money flowing and avoid a rush of refund claims while it appeals. ### What changed this week? A three-judge panel at the Court of International Trade ruled 2-1 on May 7 that Trump’s 10% global tariff under Section 122 of the Trade Act of 1974 was “invalid” and “unauthorized by law.” The administration filed a notice of appeal the next day, then asked for a stay on May 11 so the tariff could stay in place during the appeal. (dorsey.com) ### What tariff is this, exactly? This is not the earlier tariff program the Supreme Court blew up in February. After that loss, Trump switched to Section 122 and issued Proclamation 11012 on February 20, with the 10% import surcharge taking effect on February 24. Section 122 is a narrower law that lets a president impose temporary import restrictions to deal with serious balance-of-payments problems, and it caps those measures at 150 days unless Congress extends them. (dorsey.com) ### Why did the trade court say no? The court’s basic point was that the administration used the wrong kind of deficit. Section 122 is aimed at true balance-of-payments trouble, but Trump’s proclamation leaned on trade deficits and current-account figures instead. The majority said that was not what Congress had in mind when it wrote the statute in 1974. (dorsey.com) ### Did the ruling kill the tariff for everyone? Not yet. That is the catch. The Court of International Trade did not issue a nationwide injunction. It granted relief only to the parties with standing in the case — Washington state and two private importers, Basic Fun and Burlap & Barrel. For most other importers, customs collection has continued unless they bring their own claims or a broader order arrives later. (dorsey.com) ### So why does the government want a pause now? Because a narrow ruling can still snowball fast. In its May 11 filing, the government argued that without a pause, thousands of importers could flood the trade court with copycat suits and refund demands. The administration also wants to preserve leverage in trade negotiations and avoid shutting off a revenue stream before the appeal is heard. If lower courts refuse, the government has signaled it could make an emergency request to the Supreme Court. (dorsey.com) ### Where does the Supreme Court fit in? This whole thing is Plan B. In February, the Supreme Court ruled 6-3 that Trump could not use the International Emergency Economic Powers Act — IEEPA — to impose his broader global tariff regime. Justices Amy Coney Barrett and Neil Gorsuch joined the majority, and Trump has kept attacking them in public ever since, including again this past weekend. (straitstimes.com) ### Why should importers care right now? Because timing matters. The Section 122 tariff is temporary by design, and one analysis notes it would expire on July 24, 2026, unless Congress acts. That means companies are making near-term decisions about whether to keep paying, file protests, sue for refunds, or wait for the appeal. ### Bottom line (thehill.com) This is now a race between the courts and the calendar. The administration is trying to keep a fallback tariff alive after losing its first one, but the legal ground under this backup plan looks shaky too. (dorsey.com)