A U.S. Court of International Trade ruled Thursday that President Donald Trump's universal 10 percent [1] tariff is illegal and cannot be enforced.
The decision represents a significant legal setback for the administration's trade agenda, as it challenges the executive branch's authority to impose broad levies without legislative approval.
Judges in New York issued the ruling on May 7, 2026 [3], after determining that the president violated the law by bypassing congressional authorization. The court found that the administration misused a provision of the 1974 Trade Act, a statute that does not permit a global 10 percent [1] levy.
The ruling was decided by a panel in a 2-1 [2] vote. While the New York Times reports that the ruling declares the 10 percent [1] global tariff illegal on all U.S. imports [1], other reports suggest the current injunction may be limited to Washington state and two specific companies [1].
This legal challenge centers on the balance of power between the presidency and Congress regarding national commerce. By relying on the 1974 Trade Act, the administration sought to implement a sweeping trade policy that the court now deems an overreach of executive power.
Because the court has blocked the enforcement of these tariffs, the administration must now decide whether to appeal the decision to a higher court or seek a legislative remedy from Congress to legalize the 10 percent [1] rate.
“The ruling declares the 10 percent global tariff illegal on all U.S. imports.”
This ruling underscores the legal constraints of the 1974 Trade Act, signaling that the executive branch cannot unilaterally impose broad-based tariffs without specific congressional mandates. If the decision holds, it will force the administration to either negotiate with Congress or pivot to narrower, more legally defensible trade restrictions to achieve its economic goals.
