Trade Court Blocks Trump’s 10% Global Tariff

A split three-judge panel of the Court of International Trade in New York has ruled that the 10% global tariffs imposed by the president are illegal. The court issued its decision on May 7, 2026, in a 2-1 judgment. The majority wrote that the tariffs are invalid and unauthorized by law, while a lone judge disagreed.

The tariffs were imposed under Section 122 of the Trade Act of 1974 and took effect on February 24, 2026. Plaintiffs — including the state of Washington and two companies, Burlap & Barrel and Basic Fun! — had argued that the law did not justify a broad, economy-wide surcharge. Although the government said it needed the measure to address payment imbalances, the court found the statute was not an appropriate fit.

The decision enjoined collection of the duty for the named plaintiffs, but many importers may still face the tariff while appeals proceed. If appealed, the case will first go to the U.S. Court of Appeals for the Federal Circuit and could eventually reach the Supreme Court. Law firms have described paths for refunds, and administrative processes have been opened for some entries.