A panel of judges from the U.S. Court of International Trade ruled Thursday that President Trump's 10% [1] global tariff was illegal.
The decision represents a significant legal setback for the administration's trade agenda. By stripping the legal basis for the levy, the court potentially halts a primary mechanism the president used to exert economic pressure on international trading partners.
The court's decision was split 2-1 [2]. The panel ordered defendants to comply with the ruling within five days [3]. Additionally, the court granted refunds to importers who had filed lawsuits against the tariff [1].
According to the ruling, the administration could not rely on the 1974 Trade Act to justify the 10% [1] levy. The court said the tariff was an illegal attempt to sidestep a recent Supreme Court decision that had struck down a previous round of sweeping tariffs days earlier [4].
These specific tariffs were originally put in place in February 2026 [5]. The legal challenge emerged shortly after the administration attempted to implement the new measures following the Supreme Court's intervention.
There are conflicting reports regarding the immediate scope of the ruling. Some reports indicate the decision blocks the global tariff entirely [1], while others state the temporary block applies specifically to two companies, and the state of Washington [6].
The ruling was announced May 7, 2026, at the U.S. Court of International Trade in New York [1].
“The court ruled 2-1 that President Trump’s 10% global tariff was illegal.”
This ruling underscores a growing judicial conflict over the extent of presidential authority in trade matters. By rejecting the use of the 1974 Trade Act as a loophole to bypass Supreme Court restrictions, the court is limiting the executive branch's ability to unilaterally impose broad tariffs without explicit legislative or constitutional alignment.
