Trade Court Strikes Down Trump's 10% Tariffs

• The Court of International Trade voted on Thursday, May 7, 2026, to invalidate President Trump’s 10% tariffs that he imposed in February 2026 under Section 122 of the Trade Act of 1974. It was a split vote, with two judges voting in favour of the small business plaintiffs and one dissenting.
• In the case, the plaintiffs argued that the tariffs circumvented the Supreme Court’s January 2026 ruling that struck down Trump’s blanket tariffs, which were imposed in April 2025 under the International Emergency ​Economic Powers Act (IEEPA). Those IEEPA tariffs are now in the process of being refunded to importers.
• After the Supreme Court ruled against Trump’s earlier IEEPA tariffs in January 2026, the White House announced new 10% tariffs in February 2026 under Section 122 of the Trade Act of 1974. Unlike the earlier tariffs, these were temporary measures designed to remain in place for up to 150 days.
• Thursday’s ruling marks another legal setback for the Trump administration’s signature trade policy. It also raises the question of whether the US government will be required to refund the additional set of tariffs. The administration is likely to appeal the decision.

(Source: Reuters)