Trade Court Blocks Trump’s 10% Global Tariff

After the Supreme Court limited the president’s emergency tariff authority in February, the Trump administration invoked Section 122 of the Trade Act of 1974 and imposed a 10% global surcharge that took effect on February 24, 2026. The action was meant to maintain broad import duties after the IEEPA-based regime was struck down, but it has been challenged quickly in court.

On May 7, 2026 a split three-judge panel of the Court of International Trade in New York held that the 10% global tariffs were invalid and unauthorized by law, concluding that Section 122 did not justify such an economy-wide levy. The judges issued a 2-1 ruling that blocked collection of the duty for the named plaintiffs — the state of Washington and two companies, Burlap & Barrel and Basic Fun! — while leaving open the question of refunds for other importers who already paid.

Although the government may appeal, the decision already affects importers and customs processing; many shipments remain subject to collection while appeals proceed, and administrative channels have been opened for some recovery requests. If the Federal Circuit or the Supreme Court rules differently, the legal landscape could change again; conversely, if appeals fail, the injunction could be extended to more importers and lead to broader refunds.

Nevertheless, businesses that rely on global supply chains are watching closely, since tariff uncertainty adds cost and planning risk. Consequently, some firms have delayed orders while others seek legal advice, and trade lawyers expect additional litigation or administrative relief to follow in the months ahead.