In a significant development for international trade policy, the U.S. Court of International Trade has ruled against former U.S. President Donald Trump’s 10 percent global tariffs, finding them unjustified under a 1970s trade law. The ruling, decided 2-1 on May 7, 2026, favored small businesses that had challenged the across-the-board tariffs, which initially took effect on February 24.
The small businesses argued that these new tariffs were an attempt to bypass a previous U.S. Supreme Court decision that had struck down Trump’s 2025 tariffs, which were imposed under the International Emergency Economic Powers Act. Trump had invoked Section 122 of the Trade Act of 1974, a provision that permits duties for up to 150 days to address serious ‘balance of payments deficits’ or to prevent an imminent depreciation of the dollar.
This judicial intervention underscores the ongoing legal scrutiny of executive authority in imposing trade measures and provides a crucial check on the scope of such powers. The decision is expected to have significant implications for businesses that faced increased costs due to these tariffs, potentially offering relief and setting a precedent for future trade policy challenges.
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