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The decision adds fresh uncertainty for importers already bracing for higher costs, supply chain disruptions, and growing fears of another global trade clash.

The U.S. Court of Appeals for the Federal Circuit issued a short-term administrative stay on Tuesday, pausing a lower court ruling that had sided against the Trump administration’s use of the tariffs under Section 122 of the Trade Act.

As a result, the tariffs immediately snap back into effect for the three challengers who had briefly won relief last week.

That includes two businesses and Washington state, which joined the lawsuit after arguing the tariffs were unlawful.

Court Fight Escalates Over Trump Tariff Powers

The legal drama began Friday when the U.S. trade court ruled against the Trump administration’s latest tariffs. However, the ruling did not broadly halt tariff collection nationwide.

Instead, the decision only affected the specific parties involved in the case.

The Trump administration quickly appealed.

Now, while the appeals court reviews the case, the tariffs remain active for the businesses and Washington state that originally challenged them.

The appeals court is also considering whether to grant a much longer pause that could keep the tariffs in place while the broader legal battle unfolds.

The challengers have seven days to file arguments opposing the extended stay.

Why Washington State Was Included

Washington state qualified as an importer because it paid tariffs through the University of Washington, a public research institution.

That unusual detail placed the state directly inside the dispute over whether the administration legally imposed the sweeping duties.

The latest tariffs were introduced under Section 122 of the Trade Act of 1974.

Trump imposed the 10% global tariff in February after the U.S. Supreme Court struck down most of the tariffs he imposed in 2025.

The measure is currently scheduled to expire in July unless Congress votes to extend it.

High Stakes for Importers and Global Trade

The fast-moving case is being closely watched by importers, manufacturers, and global trading partners because the outcome could reshape how future presidents use emergency trade powers.

For businesses already struggling with rising costs, the temporary reinstatement of the tariffs could mean renewed financial pressure almost overnight.

The appeals court’s next move could determine whether Trump’s tariff strategy survives long term or faces another major legal setback.