Trump’s legal victory: Federal court allows his 10% universal tariff to remain in effect

A federal appeals court ruled Thursday that the 10% across-the-board tariff pushed by President Donald Trump can remain in effect while legal challenges against the measure continue, concluding that the Republican administration has demonstrated a high likelihood of ultimately prevailing in the case. The decision by the U.S. Court of Appeals for the Federal Circuit allows the tariff to remain in effect while the court thoroughly reviews the dispute.

“We conclude that the federal government has made a sufficient showing that it is likely to succeed on the merits,” the appeals court wrote in an unsigned opinion. The legal challenge was filed by several Democratic-governed states and two small businesses, which argue that Trump lacks the legal authority to impose sweeping tariffs that, in practice, trigger a global trade conflict.

Following the decision, opponents of the tariff expressed their disappointment, though they emphasized that the case has not yet been definitively resolved. “We are disappointed that the injunction was not left in place, especially after the Court of International Trade (CIT) concluded that it should be. But today’s order is not a ruling on the merits, and we were not surprised by it. Injunctive relief is always extraordinary,” said Sara Albrecht, executive director and president of the Liberty Justice Center, the organization representing the companies involved in the lawsuit.

The decision represents a major victory for the White House after a lower-court trade tribunal ruled last month that the tariff was illegal and barred federal officials from collecting it from a group of plaintiffs challenging the policy. Trump implemented the tariff after the Supreme Court struck down his earlier “Liberation Day” tariffs, ruling that he had exceeded the authority granted to him by laws related to emergency powers. In response, the administration adopted a new legal strategy, relying on Section 122 of the Trade Act of 1974 to impose a 10% tariff on most imported goods.