Federal Circuit Blocks Enforcement of Ruling Against Trump’s Section 122 Tariffs
Federal Circuit stayed enforcement of a ruling invalidating Trump’s Section 122 tariffs on June 11, 2026.
Why it matters: This decision keeps Trump-era tariffs in place during ongoing appeals, affecting legal counsel on trade compliance and government trade policy.
- On June 11, 2026, the Federal Circuit granted a stay halting enforcement of a lower court ruling invalidating tariffs under Section 122 of the Trade Act of 1974.
- Section 122 empowers the President to impose temporary import restrictions to address trade imbalances like balance of payments deficits.
- The Federal Circuit found substantial legal and procedural errors in the lower court’s decision, justifying the stay and maintaining tariffs temporarily.
- The stay allows the Trump administration’s tariffs to remain effective while further judicial review proceeds, impacting trade and import compliance law.
On June 11, 2026, the U.S. Court of Appeals for the Federal Circuit issued a stay halting enforcement of a district court ruling that had invalidated tariffs imposed under Section 122 of the Trade Act of 1974 during the Trump administration.
Section 122 authorizes the President to impose temporary import restrictions when necessary to address issues such as adverse balance of payments situations—essentially, to protect the U.S. economy from harmful import surges that affect trade deficits. The Trump administration invoked this statute to apply tariffs aimed at mitigating such economic concerns.
The district court had ruled against these tariffs, but the Federal Circuit identified significant substantive and procedural errors in that judgment. Specifically, the appellate court found that the lower court misapplied the legal standards governing Section 122 and failed to properly consider the evidentiary basis for the tariffs. By granting the stay, the Federal Circuit effectively preserves the tariffs while the appeal is resolved.
This ruling has immediate implications for legal professionals advising clients on trade compliance and tariff-related risks, as it maintains the current import restrictions imposed under the Trump-era policy. It also signals ongoing judicial scrutiny and potential reevaluation of presidential authority under Section 122, a provision that has rarely been invoked and litigated.
Practitioners interested in the statutory framework can review Section 122 of the Trade Act of 1974 in full here. Further analysis of the Federal Circuit’s stay and its implications is available in this Reason article.
By the numbers:
- June 11, 2026 — Date Federal Circuit issued the stay
- Section 122 — Trade Act provision authorizing temporary import restrictions
- One — Number of federal appellate courts that have currently stayed enforcement
Yes, but: The stay preserves the tariffs during appeal but does not resolve the underlying legal disputes; the Federal Circuit’s full opinion will provide more definitive guidance upon completion.
What's next: The Federal Circuit will hear the full appeal on the validity of the Section 122 tariffs later in 2026, with a decision expected by year-end.