Trade Court Blocks Trump’s 10% Global Tariffs

WASHINGTON — The U.S. Court of International Trade ruled Thursday that President Donald Trump’s 10% global tariffs on most imports are unlawful, dealing another significant legal setback to the administration’s trade agenda.

In a 2-1 decision, a three-judge panel found that Trump overstepped his authority under Section 122 of the Trade Act of 1974 when he imposed the across-the-board tariffs in February. The court ruled the tariffs were “invalid” and “unauthorized by law,” as the provision was not intended for broad, long-term use to address trade deficits.

The decision came in lawsuits filed by small businesses (including spice company Burlap & Barrel and toy company Basic Fun!) and the state of Washington. The court issued a narrow injunction blocking collection of the tariffs only from those specific plaintiffs, while leaving them in place for other importers pending further litigation or appeal.

The ruling follows an earlier Supreme Court decision that struck down Trump’s initial round of sweeping tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The 10% tariffs were introduced as a backup measure after that loss.

The Trump administration is expected to appeal the decision. White House officials have described the tariffs as necessary to protect American industries, address unfair trade practices, and encourage domestic manufacturing and reshoring.

The tariffs had been set to expire in July. The court’s decision adds uncertainty to the administration’s broader tariff strategy, which has been a cornerstone of Trump’s economic policy in his second term.

This marks the second major court defeat for Trump’s tariff initiatives in recent months. Legal experts say the rulings could limit the president’s ability to impose broad tariffs without explicit congressional authorization.