On May 7, 2026, the U.S. Court of International Trade ruled1 that President Donald Trump’s most recent 10% global tariffs were unlawful. In a 2 to 1 decision, the court held that the administration exceeded its statutory authority in imposing the duties under Section 122 of the Trade Act of 1974.
The tariffs, which took effect in February 2026, were imposed by the administration and relied on the statute permitting temporary duties to address “balance‑of‑payments deficits.” The court rejected the administration’s argument that current trade deficits satisfy that requirement.
As a remedy, the court immediately barred enforcement of the tariffs against the two plaintiff importers and the state of Washington, while declining to issue a nationwide injunction. Claims brought by other states were dismissed because they were not direct importers. As a result, the effect of the ruling on other importers remains uncertain.2
This decision marks the administration’s second major tariff setback in recent months. In February, the U.S. Supreme Court vacated earlier tariffs imposed under the International Emergency Economic Powers Act, prompting significant refund claims by affected importers.
Importers should closely monitor next steps, including whether the Justice Department appeals the decision. Businesses that paid the duties in question may wish to assess potential refund or protective claim strategies. Contact us to learn more.
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