A file image of President Donald Trump.
| Photo Credit: AP
A U.S. federal appeals court on Tuesday (May 12, 2026) temporarily paused a ruling declaring President Donald Trump’s global 10% tariffs illegal, granting a government request to suspend the decision pending appeal.
Mr. Trump imposed the temporary 10% duty in February, shortly after the Supreme Court struck down many of his global tariffs.
On May 7, the U.S. Court of International Trade (CIT) blocked the tariffs from being implemented against two companies and the state of Washington. That decision was to take effect on Tuesday (May 12, 2026).
The U.S. Court of Appeals for the Federal Circuit on Tuesday (May 12, 2026) issued a brief order that included an administrative stay on the CIT’s order, setting a schedule for both sides to file briefs on the matter.
In its motion for a stay, the Trump administration argued that the CIT’s decision should be stayed pending the full run of government appeals — up to the Supreme Court, if necessary.
It argued that if it issued refunds on the 10-percent global tariff, only to have an appeals court uphold its position, it would be unable to pursue economic redress.
“Plaintiffs, conversely, can be made whole through refunds, including interest, if the tariffs are ultimately held unlawful and refundable,” the government said.
The court, however, only granted an administrative stay for the period while the court considers the motions for a stay pending appeal.
Signature policy upended
The Trump administration has said the new tariff was meant to deal with balance-of-payments deficits, citing Section 122 of the Trade Act of 1974.
The 10% global tariff under Section 122 is valid until late July unless extended by Congress.
The Trump administration has also been pursuing other means to impose tariffs to replace those struck down by the Supreme Court.
U.S. authorities have opened investigations into dozens of trading partners over forced labour and overcapacity allegations — which could lead to fresh tariffs or other action.
Mr. Trump’s sector-specific tariffs on goods like steel, aluminum and autos remain unaffected by these legal challenges.
The Supreme Court’s striking down of the majority of Mr. Trump’s tariffs was a blow to the Republican president, after he made the levies a signature economic policy.
Since the decision, businesses have rushed for refunds.
U.S. Customs and Border Protection (CBP) estimated in March that more than 3,30,000 importers could be eligible for refunds after the Supreme Court’s decision.
The tariffs that were struck down earlier, imposed under the International Emergency Economic Powers Act (IEEPA), collected approximately $166 billion in duties and estimated deposits.
On Tuesday (May 12, 2026), CNBC reported that businesses had begun to receive refunds, in line with a CBP timeline released earlier this month.
CBP did not immediately respond to an AFP request for comment.
Published – May 13, 2026 01:16 pm IST
