The United States Court of International Trade decided against it The Trump administration imposed sweeping global tariffs of 10 percent in a 2-1 decision on Thursday.
The majority declared that the tariffs were “invalid” and “not authorized by law” and ordered the administration to stop collecting tariffs from the plaintiffs and refund previous payments. The court’s decision applied to three of the plaintiffs, Washington state and two companies, spice company Burlap & Barrel and toy company Basic Fun, while the others were dismissed for lack of standing. The decision only applies to the plaintiffs who were approved by the court.
The 10 percent tariffs were introduced in February under Section 122 of the Act Trade Act 1974which allows a president to impose a tariff of no more than 15 percent for a period of 150 days to correct an “international balance of payments imbalance.” The new tariffs were issued following a Supreme Court decision rejecting Trump’s use of the tariffs 1977 International Emergency Economic Powers Act (IEEPA).
Trump called He called the Supreme Court’s decision “deeply disappointing” and said he was ashamed of some of the Supreme Court’s justices. At the same time, he said the administration would launch several investigations into unfair trade practices Section 301 of the Trade Act. Section 301 permits the President to take any appropriate action, including tariff and nontariff actions, to obtain repeal of a foreign government policy or practice that burdens or restricts U.S. commerce. To take such action, the US Trade Representative (USTR) must first conduct an investigation and determine that the action is indeed discriminatory.
Four are currently running Investigations under Section 301 to over 70 countries, accounting for 99 percent of U.S. imports. These include two projects launched in 2025, one of which Targeting Brazil and a second examination of the commitments made under the 2020.Phase one” agreement of the People’s Republic of China. Two more were launched in 2026 following the Supreme Court’s decision. The first examines whether 16 U.S. trading partners, including the European Union, China and Japan, are overproducing goods, depressing U.S. prices. The second examines whether 60 countries are doing enough to ban trade in products made with forced labor.
The government is expected to appeal the U.S. Court of International Trade’s decision. If she does, the case will be sent to the U.S. Court of Appeals for the Federal Circuit.
