Trump’s 10% Global Tariff Survives a Court Fight — But Its Legal Clock Runs Out July 24
A federal appeals court has let the Trump administration keep collecting its 10% global “balance of payments” tariff while an appeal plays out, even after a lower trade court ruled the duty unlawful in May. The reprieve is temporary either way: the underlying legal authority for the tariff expires July 24, 2026, unless Congress steps in.
The U.S. Court of International Trade ruled 2-1 on May 7, 2026 that the 10% tariff, imposed under Section 122 of the Trade Act of 1974 via Presidential Proclamation No. 11012, was unlawful because the administration “failed to identify a true balance-of-payments deficit” as the statute requires, according to trade compliance firm GHY International. By that point, importers had already paid roughly $25 billion in the duty over just 72 days since it took effect February 24.
The trade court’s injunction was narrow — it applied only to two named importer plaintiffs and the state of Washington. On June 11-12, 2026, the U.S. Court of Appeals for the Federal Circuit stayed that injunction pending appeal, finding the government had shown “a sufficient likelihood of success on appeal” and would suffer “irreparable harm” without the stay, per Supply Chain Dive. Collection of the tariff has continued broadly since.
Section 122 itself caps the president at a 15% tariff for up to 150 days to address a balance-of-payments deficit — and that 150-day clock, which started when the tariff took effect, runs out July 24, 2026.
Why it matters
Nothing about this fight is resolved. The Federal Circuit’s order is explicitly non-precedential and doesn’t decide the underlying legality of the tariff — it only keeps collection running while the appeal continues. Meanwhile the statutory 150-day window that gave the administration authority to impose the tariff in the first place is set to lapse on its own in a matter of days, separate from whatever the court eventually decides.
That leaves two live questions at once: will the Federal Circuit ultimately side with the trade court that the tariff was unlawful, and will the White House or Congress extend, replace, or let the underlying authority expire on July 24. Either outcome could change what importers owe going forward, and neither is guaranteed to unwind what’s already been paid.
What this means for small business owners
If your business imports goods subject to this tariff, GHY International’s guidance is to keep paying it for now — the stay means the 10% duty remains due on entries — while filing protests to preserve your ability to claim a refund if the tariff is ultimately struck down. That paperwork matters: the original CIT injunction only guaranteed refunds with interest to the named plaintiffs within five days, and non-plaintiff importers currently have no automatic refund path if the courts eventually rule against the tariff.
For bookkeeping purposes, that means treating any Section 122 duties paid since February as a cost that may or may not come back, not one you can confidently write off or bank a refund against. Keep clean, entry-level documentation of what you paid and when — it’s the only lever you’ll have if refunds do eventually open up.
The Federal Circuit found the government had shown “a sufficient likelihood of success on appeal” in granting the stay — a preliminary signal, not a final ruling, according to Supply Chain Dive’s reporting on the June 2026 order.
The bottom line
The 10% Section 122 tariff is still being collected today, but its legal foundation is shakier than the headline “tariff upheld” suggests, and its statutory clock runs out July 24 regardless of how the appeal goes. Importers should keep paying, keep protesting, and keep records — and expect more uncertainty, not less, once the July 24 deadline hits.
