US Appeals Court Temporarily Suspends Lower Court Ruling Nullifying 'Global Tariffs'

The legal battle over tariff policy in the United States has entered a new phase as a U.S. court has temporarily suspended the effectiveness of a lower court decision that had blocked the Trump Administration’s global tariffs.

On May 12 (local time), the U.S. Court of Appeals for the Federal Circuit temporarily stayed the effect of a lower court ruling that found the Trump Administration’s 10% global tariff, imposed based on Section 122 of the Trade Act, to be unlawful. As a result, the tariff is expected to remain in effect until the appellate court issues its decision.

Previously, on May 7, the U.S. Court of International Trade (CIT) ruled that Section 122 of the Trade Act was not designed to address large-scale trade deficits, and therefore, the Trump Administration’s imposition of a 10% global tariff based on that provision lacked legal grounds. In response, the Trump Administration immediately initiated the appeals process.

At the time, the Supreme Court determined that the reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded the scope of legal authority, and the White House, in turn, introduced general tariffs based on Section 122 of the Trade Act.

However, tariffs imposed under Section 122 of the Trade Act can only be maintained for a maximum of 150 days, making them a temporary measure. Accordingly, the Trump Administration is pursuing a plan to fill the gap left by the reciprocal tariffs by establishing a new tariff regime through a Section 301 investigation process of the Trade Act over the long term.

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