US Trade Court Rules Trump’s 10% Global Tariff Illegal

A panel of federal judges has ruled that President Donald Trump acted unlawfully when he imposed a 10% tariff on most U.S. imports, dealing a setback to the administration’s trade agenda, The New York Times reported.

The order of the US Court of International Trade specifically blocked collection only from small businesses and states involved in the lawsuit. (Photo: Ken und Flickr)

The US Court of International Trade found in a split decision that Trump improperly invoked a decades-old trade law to justify the tariffs, which were introduced in February after earlier tariff measures were struck down by the Supreme Court of the United States.

The ruling limits the administration’s ability to impose broad tariffs without congressional approval.

Trump has argued the tariffs are necessary to reshape trade relationships, raise government revenue, and encourage domestic manufacturing.

Although the court declared the tariffs illegal, the order specifically blocked collection only from small businesses and states involved in the lawsuit. Legal experts expect the administration to appeal the decision.

The ruling comes just before Trump’s planned trip to China for talks with President Xi Jinping, where trade issues are expected to dominate discussions.

The decision also raises the possibility that the government may need to refund tariff collections. A separate refund process involving roughly $166 billion from earlier tariffs is already underway.