US Court Strikes Down Trump’s 10% Global Tariffs, Cites Overreach

The US Court of International Trade has declared Donald Trump’s 10% global tariffs illegal, saying the former president exceeded powers granted by Congress under federal trade law. The ruling marks another legal blow to Trump’s trade agenda ahead of a likely appeal.

A US federal court has invalidated President Donald Trump’s blanket 10% global tariffs on imports, ruling that the White House overstepped constitutional and statutory limits while attempting to revive a broad protectionist trade policy.

In a split 2-1 verdict, the US Court of International Trade said the tariffs imposed earlier this year were “invalid” and “unauthorised by law”, noting that Congress — not the President — holds the primary authority to levy tariffs under the US Constitution.

The ruling comes months after the US Supreme Court struck down a wider tariff framework introduced during Trump’s second term, forcing the administration to rely on narrower legal provisions to continue imposing duties on imports.

Court Questions Authority

The dispute centred on Trump’s use of Section 122 of the Trade Act of 1974 to justify the temporary 10% tariff on goods entering the United States from most countries.

According to the majority opinion, the administration interpreted the law too broadly and bypassed limits set by Congress. Judges said the statute did not provide the President with unrestricted authority to impose sweeping global tariffs.

One judge dissented, arguing that the law gives the executive branch more flexibility during trade-related emergencies.

The tariffs, introduced in February, were scheduled to remain in force until July 24.

Businesses Led Challenge

The legal challenge was brought by the state of Washington along with two US-based firms — spice company Burlap & Barrel and toy manufacturer Basic Fun!.

The companies argued that the tariffs increased import costs without proper legal backing and created uncertainty for businesses dependent on overseas supply chains.

Jeffrey Schwab, director of litigation at the Liberty Justice Center, which represented the companies, said questions still remain over whether firms outside the lawsuit would continue paying the tariffs while appeals proceed.

Basic Fun! CEO Jay Foreman welcomed the decision shortly after the verdict was announced, saying businesses had “fought back” against what they viewed as unlawful duties.

Fresh Blow To Trade Policy

The judgment is being seen as another setback for Trump’s aggressive tariff strategy, which has remained central to his economic and political messaging.

Earlier this year, the US Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) could not be used to justify broad import tariffs on nearly every trading partner.

At the time, the Trump administration had argued that America’s long-running trade deficit amounted to a national emergency, allowing extraordinary executive action.

The latest trade court ruling further narrows the legal routes available to the administration for imposing across-the-board import duties.

Appeal Likely Soon

The White House is expected to challenge the ruling before the US Court of Appeals for the Federal Circuit in Washington.

Legal observers say the dispute could eventually return to the Supreme Court, especially given its implications for presidential authority over trade and emergency economic powers.

For now, uncertainty remains over how quickly the tariffs may be suspended and whether customs authorities will continue collecting duties during the appeals process.

New Tariff Routes Explored

Despite the legal setbacks, the Trump administration appears determined to continue pursuing tariff-based trade measures.

Officials are currently examining whether several major trading partners, including China, Japan and the European Union, are flooding global markets with low-cost goods that harm American manufacturers.

A separate investigation is also looking into whether dozens of economies are doing enough to curb imports linked to forced labour practices.

Sources familiar with the matter said findings from those probes could form the basis for new tariffs later this year, though any fresh measures would likely face close legal scrutiny after the latest court ruling on Trump’s 10% global tariffs.

Trade Uncertainty Continues

The decision is expected to have wider implications for US importers, exporters and global trade partners already dealing with shifting tariff policies and legal uncertainty.

Economists say repeated court battles over executive trade powers may complicate long-term business planning, particularly for sectors reliant on international supply chains.

While the ruling temporarily weakens Trump’s tariff push, it may also intensify political debate in Washington over how much authority future presidents should hold in reshaping US trade policy without direct congressional approval.