politics
U.S. Trade Court Rules Trump’s 10% Global Tariff Exceeds Authority Under 1974 Trade Act
The U.S. Court of International Trade ruled 2-1 on May 7, 2026, that President Donald Trump’s across-the-board 10% tariffs on most imports were not justified under a 1970s trade law. The decision favored small businesses that challenged the tariffs, which took effect Feb. 24. One judge cautioned that it was premature to declare victory for the plaintiffs.
May 7, 5:02 PM·1m read7 sources
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U.S. Court of International Trade ruled against President Donald Trump's 10% global tariffs on May 7, 2026. A panel of federal judges blocked President Trump from imposing the 10% tariff on most imports.
The court found that across-the-board tariffs were not justified under a 1970s trade law. The ruling was issued on Thursday, May 7, 2026. U.S. Court of International Trade ruled in favour of small businesses that challenged the tariffs, which took effect on February 24, 2026.
The decision was 2-1. One judge said it was premature to grant victory to the small business plaintiffs. U.S. Supreme Court decision that struck down the Republican president's 2025 tariffs imposed under the International Emergency Economic Powers Act.
In his February order, Trump invoked Section 122 of the Trade Act of 1974. Section 122 of the Trade Act of 1974 allows for duties for up to 150 days to correct serious balance of payments deficits or head off an imminent depreciation of the dollar. Thursday's court ruling found the law was not an appropriate step for the kinds of trade deficits that Trump cited in his February order.
U.S. were exempt from the global tariff introduced in Trump's February order.
