Trump’s new global tariffs of 10% have been struck down by a US court, but only partially – Nationally
A federal court ruled Thursday against new global tariffs imposed by US President Donald Trump after a tough loss at the US Supreme Court.
A three-judge panel of the Court of International Trade in New York found that the 10% tariffs worldwide were illegal after small businesses sued.
The court ruled 2-1 that Trump exceeded the tax powers Congress had granted the president under the law. The charges are “unconscionable” and “unauthorized by law,” the majority wrote.
The third judge on the panel found that the law allows the president more leeway on taxation.
If the administration appeals Thursday’s decision, as expected, it will first turn to the US Court of Appeals for the Federal Circuit, based in Washington, and then, possibly, the Supreme Court.
The problem is the temporary 10% global tariffs the Trump administration imposed after the Supreme Court in February struck down the double-digit tariffs the president had imposed last year on nearly every country in the world.
The new tariffs, implemented under Section 122 of the Trade Act of 1974, were set to expire on July 24.
The court’s decision applies directly to only three plaintiffs – the state of Washington and two businesses, spice company Burlap & Barrel and toy company Basic Fun!
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“It’s not clear yet” whether some businesses will have to continue paying taxes, said Jeffrey Schwab, director of litigation at the Liberty Justice Center, which represents the two companies.
“We fought today and won, and we’re very happy,” Jay Foreman, CEO of Basic Fun!, told reporters Thursday.
The decision marked another legal setback for the Trump administration, which has tried to protect the US economy behind a wall of import tariffs. Last year, Trump used the 1977 International Emergency Economic Powers Act (IEEPA) to declare the country’s long-running trade deficit a national emergency, justifying a global tariff.
The Supreme Court ruled on February 28 that the IEEPA did not approve the tariffs. The US Constitution gives Congress the power to enact taxes, including tariffs, although lawmakers can delegate taxing powers to the president.
It is expected that Trump will try to repeal the already repealed taxes. The administration is conducting two investigations that could end the price increases.
The US Trade Representative’s office is looking into whether 16 US trading partners – including China, the European Union and Japan – are overproducing, lowering prices and putting US manufacturers at a disadvantage.
It also investigates whether 60 economies – from Nigeria to Norway and which account for 99% of US goods – are doing enough to prevent trade in products created by forced labor.
© 2026 The Canadian Press
