WASHINGTON \u2014 The U.S. government can continue collecting the 10% worldwide tariff it imposed in February while legal challenges to the levies continue to work their way through the courts, a federal court ruled Thursday.<\/p>\n
The Court of Appeals for the Federal Circuit in Washington decision handed a procedural win to the Trump administration, concluding that its case was \u201clikely to succeed on the merits.\u2019\u2019<\/p>\n
What You Need To Know<\/p>\n
The U.S. government can continue collecting the 10% worldwide tariff it imposed in February while legal challenges to the levies continue to work their way through the courts, a federal court ruled Thursday At issue are temporary 10% worldwide tariffs<\/a> President Donald Trump imposed after the Supreme Court in February struck down even broader double-digit tariffs the president had imposed last year on almost every country on Earth. The new tariffs, invoked under Section 122 of the Trade Act of 1974, are set to expire July 24.<\/p>\n Section 122, which had never been used to justify import taxes before, allows the president to impose worldwide tariffs of up to 15% for 150 days, after which congressional approval is needed to extend them.<\/p>\n Section 122 is aimed at what it calls \u201cfundamental international payments problems.\u2019\u2019 In dispute is whether that wording covers trade deficits \u2014 the gap between what the U.S. sells other countries and what it buys from them \u2014 as the Trump administration contends.<\/p>\n A split three-judge panel of the specialized Court of International Trade<\/a> in New York last month found the 10% global tariffs were illegal after small businesses sued to stop them<\/a>. The trade court ruled 2-1 that Trump overstepped the tariff power that Congress had delegated to the president under the law. The tariffs are \u201cinvalid\u2033 and \u201cunauthorized by law,\u201d the majority wrote.<\/p>\n The case could be headed to the Supreme Court.<\/p>\n
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The Court of Appeals for the Federal Circuit in Washington decision handed a procedural win to the Trump administration, concluding that its case was \u201clikely to succeed on the merits\u2019\u2019
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At issue are temporary 10% worldwide tariffs<\/a> President Donald Trump imposed after the Supreme Court in February struck down even broader double-digit tariffs the president had imposed last year on almost every country on Earth
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The new tariffs, invoked under Section 122 of the Trade Act of 1974, are set to expire July 24<\/p>\n