A US trade court has ruled that former President Donald Trump’s temporary 10% global tariffs were “illegal”, dealing another setback to his tariff strategy just months after the Supreme Court struck down broader duties imposed under a national emergencies law.
A split three-judge panel at the Court of International Trade found that Trump had improperly used Section 122 of the Trade Act of 1974 to impose the levies. The court said the worldwide tariffs were “invalid” and “unauthorised by law”, concluding that he exceeded the tariff powers granted to the president by Congress. However, one judge dissented, arguing that the law provides broader authority, and another said it was premature to grant a final ruling in favour of the challengers.
While the court refused to issue a universal injunction that would have blocked the tariffs for all importers, it did restrict enforcement for the plaintiffs in the case—Washington state, toy maker Basic Fun!, and spice importer Burlap & Barrel. Most other importers remain unaffected for now.
The case stemmed from Trump’s temporary tariffs introduced after the Supreme Court earlier struck down broader trade duties imposed under emergency powers. The administration had justified the 10% levy by citing a large US trade deficit, but economists, including former IMF official Gita Gopinath, had disputed the claim that it represented a balance-of-payments crisis.
Business leaders welcomed the ruling. Basic Fun! CEO Jay Foreman called it “an important win for American companies,” arguing that unlawful tariffs harm global supply chains and competitiveness.
However, Trump dismissed the ruling, calling the judges “radical left” and criticising the decision while speaking to reporters, saying court setbacks like this were not surprising.
The ruling adds fresh uncertainty to US trade policy, even as the contested tariffs are set to expire on July 24.
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