US trade court rules against Donald Trump’s global tariffs
The US Court of International Trade recently ruled against President Donald Trump’s 10% global tariffs. This decision marks another legal setback for his trade policies following an earlier Supreme Court ruling. Small businesses and states challenged the tariffs successfully.
The US Court of International Trade issued a 2-1 decision on May 7, 2026, finding the tariffs unlawful under Section 122 of the 1974 Trade Act. The court determined the administration lacked sufficient justification for the broad import duties, which took effect on February 24, 2026. It ordered a halt to collections from plaintiffs and refunds for prior payments, though the ruling applies directly to challengers.
These 10% tariffs replaced broader global tariffs struck down by the Supreme Court on February 20, 2026, in a 6-3 ruling led by Chief Justice John Roberts. The Supreme Court held that Trump exceeded authority under the International Emergency Economic Powers Act (IEEPA) by imposing them without congressional approval. Trump invoked a different 1974 law for the new tariffs to address trade deficits.
The ruling introduces uncertainty for US importers and global supply chains, benefiting small businesses reliant on affordable imports. Tariffs may remain in effect during appeals, but it challenges Trump’s unilateral trade approach. Over $130 billion in prior tariffs’ fate remains unclear from earlier cases.
