US Court Rules Trump Administration's 10% Global Tariff Illegal

A U.S. court on Thursday ruled that a 10% global alternative tariff introduced by the Trump administration is illegal [1, 2].

The ruling marks a significant legal setback for the administration's trade policy, as the court ordered an immediate halt to the tariffs. This decision follows a previous Supreme Court ruling that found "reciprocal tariffs" to be illegal, signaling a judicial trend against the administration's unilateral trade measures [1, 2].

The U.S. International Trade Court in Washington, D.C., issued the decision on May 7 [2, 3, 4]. The court determined that the alternative tariffs, which were implemented in February 2026 [1, 2], violated established trade laws [1, 2].

The legal challenge was driven by a coalition of state and corporate interests. Twenty-four states, primarily led by Democratic governors, filed lawsuits against the measure ^[2]. Additionally, two companies joined the litigation as plaintiffs to challenge the legality of the 10% levy ^[2].

The administration had introduced the alternative tariff as a substitute after the Supreme Court struck down its reciprocal tariff plan [1, 2]. By applying a flat 10% rate to goods from all nations, the administration sought to maintain a protective trade barrier despite the loss of its previous legal framework ^[1].

Court documents indicate the ruling focuses on the administration's failure to adhere to statutory trade requirements. The decision effectively strips the executive branch of its current mechanism to impose these specific global duties while the legal process continues ^[2].