US Court Keeps Trump's 10% Global Tariffs Alive as Legal Fight Heads Toward Supreme Court

In a significant boost for the administration of US President Donald Trump , a federal appeals court has allowed the government to continue collecting its 10% worldwide tariffs while a legal battle over the controversial trade measure continues.

The ruling by the US Court of Appeals for the Federal Circuit in Washington gives the administration temporary relief after a lower court had declared the tariffs unlawful. The appeals court said the government's case was "likely to succeed on the merits," allowing the import duties to remain in effect until the dispute is fully resolved.

At the centre of the case are temporary global tariffs imposed in February under Section 122 of the Trade Act of 1974 . The provision allows a president to impose worldwide tariffs of up to 15% for a maximum of 150 days without congressional approval. The current tariffs are scheduled to expire on July 24 unless further action is taken.

The Trump administration argues that the measure is necessary to address persistent US trade deficits , which reflect the gap between the value of goods America imports and exports. Officials contend that these imbalances pose a serious economic challenge and justify the use of emergency trade powers.

However, critics have strongly opposed that interpretation. Last month, a split three judge panel of the Court of International Trade in New York ruled that the tariffs were "invalid" and "unauthorised by law." The court found that the president had exceeded the authority delegated by Congress, siding with a group of small businesses that challenged the duties.

Beyond the immediate legal dispute, the case has evolved into a broader debate over the limits of presidential power in trade policy . Supporters say the executive branch needs flexibility to respond quickly to economic challenges, while opponents argue that major trade decisions should require clear congressional approval. The judiciary has therefore emerged as a key referee in determining how far presidential authority can extend under existing trade laws.

The outcome is being closely watched around the world. Businesses, investors and foreign governments see the case as a potential precedent that could influence future US trade actions , global supply chains and international economic relations . Any final ruling could have implications far beyond American borders, affecting trade negotiations and market confidence worldwide.

With both sides standing firm, legal experts believe the dispute could ultimately reach the US Supreme Court , setting the stage for a landmark decision on the future of American trade policy.