US trade court rules against Trump’s 10 percent global tariffs

This aerial view shows Alberta's Northland softwood lumber, a Canadian product targeted by US President Donald Trump's tariffs, near Fort McMurray, Alberta, Canada, on May 6, 2026. US tariffs have suppressed Canadian growth, and raised unemployment in targeted sectors like auto, steel, aluminum and lumber. (AFP)

• Ruling finds across-the-board tariffs not justified under a 1970s trade law 
• Small businesses challenged the tariffs, which took effect on February 24

NEW YORK: The US trade court on Thursday ruled against President Donald Trump’s ​latest 10 percent global tariffs, finding across-the-board tariffs were not justified under a 1970s trade law.
The US Court of International Trade ruled in favor of small businesses that challenged the tariffs, which took effect on February 24. The ruling was 2-1, with one judge saying it was premature to grant victory to the small ‌business plaintiffs.
The small ‌businesses had argued the ​new ‌tariffs ⁠were an attempt ​to sidestep ⁠a landmark US Supreme Court decision that struck down the Republican president’s 2025 tariffs imposed under the International Emergency Economic Powers Act.
In his February order, Trump invoked Section 122 of the Trade Act of 1974, which allows for duties for up to 150 days ⁠to correct serious “balance of payments deficits” or head ‌off an imminent depreciation of ‌the dollar.
Thursday’s court ruling found ​the law was not ‌an appropriate step for the kinds of trade deficits ‌that Trump cited in his February order.
“This decision is an important win for American companies that rely on global manufacturing to deliver safe and affordable products. Unlawful tariffs make it harder ‌for businesses like ours to compete and grow,” said Jay Foreman, CEO of toymaker Basic ⁠Fun!
“We ⁠are encouraged by the court’s recognition that these tariffs exceeded the President’s authority. This ruling brings needed clarity and stability for companies navigating global supply chains,” he said in a statement.
The Trump administration had argued that a serious balance-of-payments deficit existed in the form of a $1.2 trillion annual US goods trade deficit and a current account deficit of 4 percent of GDP. But some economists and trade lawyers argue the US is not ​on the cusp of ​a balance-of-payments crisis, making the new duties vulnerable to a legal challenge.