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The Trump administration just cleared a significant legal hurdle. A federal appeals court ruled that the 10% global tariffs can stay in effect while the broader legal battle continues, giving the White House breathing room in what has become a drawn-out fight over executive trade authority.
The ruling from the US Court of Appeals for the Federal Circuit effectively pauses the impact of a lower court decision that had declared the tariffs unlawful.
The legal saga so far
In February 2026, the Supreme Court struck down a broader set of tariffs that had been imposed under the International Emergency Economic Powers Act (IEEPA) in a 6-3 decision. That ruling forced the administration to find a different legal foundation for its trade agenda.
The administration pivoted to Section 122 of the Trade Act of 1974, using it to impose temporary 10% duties on imports across the board.
Small businesses and the state of Washington filed challenges arguing the tariffs exceeded the president’s authority under Section 122. On May 7-8, 2026, a 2-1 ruling by the US Court of International Trade agreed with them, declaring the tariffs unlawful.
The Department of Justice filed an appeal the very next day, and the appeals court has now allowed the tariffs to remain in effect during the proceedings.
One important nuance: the lower court’s ruling technically only applied to the parties directly involved in the lawsuit. For most importers, the tariffs never actually stopped. This appeals court decision reinforces that status quo, keeping the 10% duties alive for the foreseeable future.
Why crypto cares about trade policy
Crypto markets have exhibited pronounced volatility tied directly to tariff developments. Favorable court decisions have triggered rallies, while new tariff threats or escalations have sent prices tumbling.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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