The U.S. Court of International Trade ruled Thursday that President Donald Trump's 10% [1] global tariffs are illegal and exceed his executive authority.
This ruling represents a significant legal check on the administration's trade policy, potentially removing a broad financial burden on international imports and altering the U.S. approach to global commerce.
In a 2-1 [1] decision delivered on May 7, 2026 [1], the federal trade court in New York found that the tariffs violated Section 122 of the Trade Act of 1974 [2]. The court said the administration failed to demonstrate a balance-of-payments deficit, which is the specific legal requirement necessary to invoke that section of the law [2].
The court rejected the administration's expansive view of executive power regarding the imposition of tariffs [2]. Because the legal threshold for a balance-of-payments deficit was not met, the court said the 10% [1] duties were not justified under the 1970s-era legislation [2].
These global tariffs were previously set to expire in July 2026 [3]. However, this court ruling effectively blocks their continued implementation ahead of that deadline [3].
The decision comes as a result of challenges to the legality of the broad-based tariffs, which the court said were an overreach of the powers granted to the president by Congress [2].
“The court struck down Trump’s 10% global tariffs as illegal.”
This ruling establishes a strict judicial limit on the use of the Trade Act of 1974, signaling that the executive branch cannot bypass specific economic triggers—such as a balance-of-payments deficit—to impose broad tariffs. By narrowing the interpretation of presidential authority, the court has reinforced the role of Congress in defining trade limitations and may prompt the administration to seek alternative legal frameworks or legislative approval for future trade barriers.
