The Trump administration on Friday formally appealed a recent Court of International Trade ruling that had blocked a 10% global tariff put in place in February, according to court filings.
In a 2-1 decision issued Thursday, the Court of International Trade concluded that Section 122 of the Trade Act of 1974 was not intended to be used to address trade deficits that arise when the United States imports more goods than it exports. The court granted relief to three importers who challenged the levy - two of them small businesses and one being the state of Washington - and enjoined the tariff as applied to those plaintiffs.
The appellate filing targets a tariff schedule that had been introduced as a replacement after the Supreme Court in February found the prior global tariffs unlawful. That earlier set of duties had been imposed under the International Emergency Economic Powers Act and was struck down by the Supreme Court. Following that decision, the administration reissued a 10% tariff on all imports using authority in Section 122 of the Trade Act.
The contested tariffs were designed as temporary measures and are slated to expire on July 24 unless Congress acts to extend them. The Court of International Trade ruling affects levies that are due to lapse in roughly two months, and it arrives about a week before President Trump is scheduled to meet with Chinese President Xi Jinping in Beijing to discuss trade tensions.
The recent decision creates the potential for another complex legal fight over billions of dollars in tariff refunds for affected importers. The appeal filed by the administration seeks to overturn the trade court's interpretation of Section 122 and to preserve the 10% duties while litigation proceeds.
When addressing reporters on Thursday, President Trump blamed the trade court's decision on "two radical left judges." The exchange underscores the political dimensions that have accompanied the legal contests over the tariffs.
Key context and chronology
- Supreme Court in February found prior global tariffs imposed under a national emergencies law to be unlawful.
- Administration replaced those duties with a 10% global tariff using Section 122 of the Trade Act.
- Trade court on Thursday blocked the replacement tariff for three importers in a 2-1 decision; administration appealed on Friday.
Next steps
The appeal will advance the legal dispute over the scope of Section 122 and the validity of the temporary 10% levy, while timing and potential refund claims remain unsettled as the parties proceed through the courts.