A federal court panel blocked the 10% [1] global tariffs imposed by President Donald Trump on Thursday, May 7, 2026 [3].
The ruling represents a significant legal setback for the administration's trade agenda, limiting the executive branch's ability to unilaterally raise costs on imported goods. By restricting the use of specific legislative tools for broad tariffs, the court may prevent immediate price increases for consumers and businesses relying on international trade.
The U.S. Court of International Trade in Washington, D.C., issued the decision through a panel that voted two-one [2] against the administration. The judges said that President Trump could not rely on the 1974 Trade Act to justify the imposition of the 10% [1] global tariffs [4].
This decision follows a previous loss for the administration at the Supreme Court. The Court of International Trade's ruling specifically targets the legal mechanism used to enact these wide-reaching trade barriers, effectively halting their implementation while the legal validity of the administration's approach remains under scrutiny.
The 1974 Trade Act has historically been used to address specific trade imbalances, or national security concerns. However, the court said that applying it to a blanket global tariff exceeded the authority granted to the president under that law [4].
“A federal court panel blocked the 10% global tariffs imposed by President Donald Trump.”
This ruling underscores a growing judicial check on executive power regarding trade policy. By invalidating the use of the 1974 Trade Act for global tariffs, the court is signaling that broad economic shifts via tariffs require more explicit legislative authorization or a more narrow legal justification than the administration provided.
