Trade Court Declares Trump's 10% Global Tariff Unlawful

The Court of International Trade has ruled that President Donald Trump's 10% global tariff, imposed in February, is unlawful, stating that the administration exceeded its authority by implementing the tariff without congressional approval.

This decision follows a previous Supreme Court ruling that invalidated broader tariffs imposed under the International Emergency Economic Powers Act. In response to that ruling, President Trump invoked Section 122 of the Trade Act of 1974 to justify the new tariffs, which were set to expire on July 24.

The court's 2-1 decision emphasized that allowing the president to unilaterally define a "balance-of-payments deficit" could create a loophole for imposing tariffs at will. While the ruling directly affects three plaintiffs—the state of Washington, spice company Burlap & Barrel, and toy company Basic Fun!—experts predict it may encourage more importers to seek broader relief and refunds for tariff payments.

The administration is expected to appeal the decision, which could ultimately reach the Supreme Court. Meanwhile, the Office of the U.S. Trade Representative is examining whether certain trading partners are overproducing goods and whether countries do enough to combat forced labor in their supply chains, potentially leading to new trade investigations and tariffs.