The U.S. Court of International Trade ruled Thursday that President Donald Trump’s 10 percent [1] global tariffs were illegal and struck them down [2].
The ruling represents a significant legal setback for the administration's trade policy, as it limits the executive branch's power to unilaterally impose broad tariffs without specific statutory authorization.
On May 7, 2026, a panel of judges in New York City determined that the tariffs exceeded the president's statutory authority [3]. The measures had been implemented on Feb. 24, 2026 [4], and were challenged by a coalition of small-business plaintiffs who said the tariffs violated existing trade law [3].
While the New York Times reported that the panel struck the tariffs down entirely [2], other reports indicated the court may have issued a narrow block on the measures [5]. This discrepancy highlights a potential limitation in how the ruling will be applied across different trade sectors.
Small businesses said that the broad application of the 10 percent [1] levy created unsustainable costs for importers. The court agreed that the administration had overstepped its legal bounds in the pursuit of these global trade barriers [3].
The decision comes after months of economic volatility following the Feb. 24, 2026 [4] start date of the tariffs. The court's action on May 7, 2026 [6], effectively halts the legal basis for the current global tariff structure.
“The court ruled that Trump’s 10% global tariffs were illegal and struck them down”
This ruling reinforces the boundary between executive discretion and legislative authority in trade policy. By determining that the 10% global tariff exceeded statutory limits, the court has signaled that the presidency cannot bypass trade laws to implement sweeping economic barriers, potentially opening the door for further legal challenges to other administration trade mandates.
