The U.S. Court of Appeals for the Federal Circuit issued an emergency pause Tuesday on a lower court ruling that struck down President Trump’s backup 10% global tariff plan, buying the administration crucial time as the legal battle over presidential trade authority intensifies.

Federal Circuit Court Steps In

The Federal Circuit issued an administrative stay blocking enforcement of last week’s Court of International Trade decision that declared Trump’s global tariffs unlawful. The temporary pause allows the three-judge appeals panel time to weigh legal arguments from both sides before deciding whether to suspend the tariffs during ongoing litigation. The unsigned order made clear the court has not taken any position on the merits of the administration’s appeal and continues evaluating whether to issue a longer-term stay.

Supreme Court Precedent Sets Stage

The legal confrontation stems from the Supreme Court’s recent 6-3 decision striking down Trump’s earlier tariffs imposed under the International Emergency Economic Powers Act. The high court ruled the president lacks authority under IEEPA to impose such trade measures. In response, Trump implemented the 10% global tariff as an alternative approach, but a small business quickly challenged this backup plan in the international trade court. Judge Richard Eaton, appointed by President Clinton, ruled the administration must begin refunding approximately 130 billion dollars in collected tariff revenue.

Administration Faces Refund Deadline

The Trump administration previously requested a 90-day delay in processing tariff refunds, but the Federal Circuit denied that request. The appeals court also rejected a separate administration motion in March seeking to postpone implementing the Supreme Court’s original tariff ruling. These denials increase pressure on the government as businesses await clarity on whether they will recover tariff payments and when those refunds might arrive.

Constitutional Powers at Stake

The dispute centers on fundamental questions about presidential authority over trade policy and economic emergency powers. The Supreme Court’s determination that Trump exceeded his authority under IEEPA prompted the administration to seek alternative legal foundations for the tariffs. With Tuesday’s temporary pause, businesses and importers remain in limbo regarding tariff obligations while appellate judges examine whether the lower court correctly interpreted presidential powers. The case could establish precedent limiting executive branch control over international trade measures for future administrations regardless of party affiliation.