US Trade Court Rules Against President Trump’s 10% Global Tariffs
U.S. trade court rules against Trump's 10% global tariffs
On Thursday, the US Court of International Trade ruled against President Donald Trump’s latest 10% global tariffs, finding the across-the-board duties were not justified under Section 122 of the Trade Act of 1974, Reuters reported (5-7-26).
The court ruled 2–1 in favor of small businesses that challenged the tariffs, which took effect on February 24. One judge dissented, saying it was premature to grant victory to the plaintiffs.
The businesses argued the tariffs were an attempt to sidestep a US Supreme Court decision that struck down Trump’s 2025 tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
In his February order, Trump invoked Section 122, which permits temporary duties of up to 150 days to address serious balance-of-payments deficits or prevent imminent depreciation of the dollar.
The court found Section 122 was not an appropriate basis for the trade deficits cited in Trump’s order.
Read FEA’s earlier analysis of the implications of the Section 122 duties here.
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