Federal Appeals Court Allows Trump Administration to Continue Imposing Section 122 Tariffs Pending Full Review

Washington, D.C. – A federal appeals court has granted the Trump administration a significant procedural victory, ruling that it can continue collecting a 10% global tariff imposed under Section 122 of the Trade Act of 1974 while legal challenges proceed. The decision by the U.S. Court of Appeals for the Federal Circuit on June 11, 2026, halts a lower court injunction and allows the tariffs to remain in effect during the appeals process.

The tariffs, implemented in February 2026 as part of the administration’s second major trade initiative, were challenged by a coalition of small businesses and several states. Plaintiffs argued that Section 122, which permits temporary tariffs of up to 15% for 150 days to address trade imbalances, was improperly used for broader, longer-term economic policy goals. A panel of the U.S. Court of International Trade had previously ruled 2-1 against the administration, finding the tariffs exceeded the statute’s intended scope.

In its order, the Federal Circuit determined that the government made a sufficient showing it is likely to succeed on the merits of its appeal. The court stayed the lower court’s injunction, enabling continued collection of the duties on imports from nearly all trading partners. This marks the latest development in ongoing litigation over the administration’s aggressive use of trade authorities to address trade deficits, protect domestic industries, and counter unfair practices.

Section 122 had rarely been invoked prior to this administration. Trump officials have defended its use as a necessary and lawful tool to correct persistent U.S. trade imbalances and encourage reciprocal treatment from trading partners. The tariffs are viewed as a key component of broader economic strategy that includes reshoring manufacturing, strengthening supply chains, and reducing reliance on adversarial nations.

The appeals court’s ruling provides temporary relief for the administration while the full case is litigated. Legal observers expect the matter could ultimately reach the Supreme Court, especially given prior high-profile disputes over presidential trade powers. The decision avoids immediate disruption to importers and revenue collection, which has already generated significant funds for the U.S. Treasury.

Critics, including affected businesses and Democratic-led states, contend the tariffs raise consumer costs and strain international relationships. Supporters argue they are essential for correcting decades of unfavorable trade deals and bolstering American workers in key sectors. The administration has indicated it will vigorously defend the policy through all levels of appeal.

This procedural win allows the Trump administration to maintain momentum on its trade agenda while courts continue to examine the boundaries of executive authority under longstanding trade statutes. Further hearings and potential additional rulings are anticipated in the coming months.