US court blocks Trump’s 10% tariff plan again

May 08, 2026, 10:04 am

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U.S. President Donald Trump speaks during a public event. /UPI-Yonhap

A U.S. federal court has once again blocked President Donald Trump’s revived across-the-board 10% tariff policy, dealing another blow to one of the administration’s key economic measures.

According to CNN, the United States Court of International Trade ruled 2-1 on Wednesday that the Trump administration failed to justify its use of Section 122 of the Trade Act of 1974 as the legal basis for imposing broad tariffs.

The ruling marks the first judicial decision on the administration’s renewed tariff policy after the Supreme Court of the United States earlier this year found significant portions of Trump’s sweeping tariff agenda unlawful.

In its opinion, the court stated that the presidential order “failed to demonstrate the ‘large and serious United States balance-of-payments deficit’ required by Congress.”

Section 122 of the 1974 Trade Act allows a president to impose tariffs of up to 15% without congressional approval under certain conditions. However, the court concluded that the administration did not sufficiently explain how those requirements had been met in this case.

The court ordered the government to stop collecting the tariffs from the plaintiffs involved in the lawsuit and to refund duties that had already been paid. The ruling currently applies only to the plaintiffs in the case, while tariffs on other importers may remain in effect until July.

Following the decision, the Trump administration’s remaining major tariff tools are expected to be limited largely to sector-specific duties. CNN also reported that the administration has begun procedures to introduce additional tariffs targeting entire countries.

The Trump administration is expected to file an immediate appeal.

#Donald Trump #US tariffs #US Court of International Trade #trade law #tariff refunds