The court ruled in favour of small businesses that challenged the tariffs that took place in February.
Published On 7 May 20267 May 2026
The United States trade court has ruled against President Donald Trump’s latest 10 percent global tariffs, finding that across-the-board tariffs were not justified under a 1970s trade law.
The US Court of International Trade ruled on Thursday in favour of small businesses that challenged the tariffs, which took effect on February 24. The ruling was 2-1, with one judge saying it was premature to grant victory to the small business plaintiffs.
The small businesses had argued the new tariffs were an attempt to sidestep a landmark US Supreme Court decision that struck down the Republican president’s 2025 tariffs imposed under the International Emergency Economic Powers Act.
In his February order, Trump invoked Section 122 of the Trade Act of 1974, which allows for duties for up to 150 days to correct serious “balance of payments deficits” or head off an imminent depreciation of the dollar.
Thursday’s court ruling found the law was not an appropriate step for the kinds of trade deficits that Trump cited in his February order.
