Trade Court Strikes Down Trump's 10% Global Tariffs
A 2-1 decision found the duties improperly invoked a 1970s trade law, siding with small businesses that accused the administration of trying to bypass a Supreme Court ruling.
May 7th 2026 · United States
The U.S. Court of International Trade ruled Thursday against President Donald Trump's latest 10% global tariffs, finding that the across-the-board duties imposed in February were not justified under a 1970s trade law. The divided 2-1 ruling sided with small businesses that had challenged the tariffs, which took effect on February 24. The small businesses argued the new tariffs were an attempt to sidestep a landmark U.S. Supreme Court decision that struck down Trump's previous 2025 tariffs imposed under the International Emergency Economic Powers Act. One judge noted it was premature to grant victory to the plaintiffs. Trump had invoked Section 122 of the Trade Act of 1974 when issuing the February order, a provision that allows for duties lasting up to 150 days to address serious balance of payments deficits or to prevent an imminent depreciation of the dollar. However, Thursday's ruling found that this law was not an appropriate legal mechanism for the types of trade deficits Trump cited in his order. The ruling comes amid multiple legal challenges to Trump's tariff policies, including lawsuits filed by 24 states, most led by Democrats, that also argued the administration was attempting to circumvent the Supreme Court's earlier decision.