President Trump’s Global Tariff Regime Dealt Another Legal Blow

This month, the US Court of International Trade ruled that President Trump’s current 10% universal global tariff, imposed under Section 122 of the Trade Act of 1974, was unlawful.

The tariff was introduced in January as a fallback measure after the Supreme Court earlier struck down the administration’s broader worldwide tariff regime under the International Emergency Economic Powers Act (IEEPA).

In a 2–1 decision, the court held that President Trump had exceeded presidential authority under Section 122 and concluded that current economic conditions do not amount to the kind of “large and serious balance-of-payments deficits” required to justify such tariffs.

As a result, the Court ordered the Trump administration to stop collecting the tariff from the plaintiffs and refund duties previously paid, finding the tariff to be “invalid” and “unauthorised by law.”

However, the ruling applies only to the specific plaintiffs in the case. The Court declined to grant nationwide relief to other importers, marking a key distinction from the earlier IEEPA ruling.

The US Department of Justice is expected to appeal the decision, and the US Court of Appeals has already issued a stay pending that appeal.

The tariffs themselves are temporary measures. Under Section 122, such tariffs may remain in force for a maximum of 150 days unless Congress approves an extension, meaning they are currently due to expire in July.

Nevertheless, the outcome of this case remains significant. If the decision is upheld by higher courts, it could open the floodgates for further duty reclaims.