U.S. trade court blocks Trump’s 10 per cent import tariffs

A U.S. federal trade court has ruled that President Donald Trump’s across-the-board 10 per cent import tariffs were not authorized under American law, siding with states and businesses that challenged the measure.

In a decision issued May 7, the United States Court of International Trade said the administration exceeded the authority granted under Section 122 of the Trade Act of 1974 when it imposed the temporary tariffs in February 2026. The court granted summary judgment in favour of several plaintiffs, including Washington state and importers Burlap and Barrel and Basic Fun Inc.

The tariffs had applied a 10 per cent duty on most goods entering the United States for up to 150 days. The Trump administration argued the measure was needed to address what it described as “fundamental international payments problems” and a large U.S. trade deficit.

The court rejected that interpretation, finding the law was intended for exceptional financial crises tied to international payment imbalances, not broad trade deficits in a modern floating-currency system. Judges said the proclamation did not meet the legal conditions required for the president to impose the surcharge.

The ruling permanently blocks enforcement of the tariffs against the successful plaintiffs.