Washington, D.C. — The U.S. Court of International Trade on Thursday blocked enforcement of President Donald Trump’s 10% global tariffs for businesses involved in a lawsuit challenging the administration’s authority to impose the import taxes.
In a 2-1 ruling, the federal court found the Trump administration lacked legal authority under Section 122 of the Trade Act of 1974 to implement the tariffs. The decision applies only to the plaintiffs involved in the case, while the tariffs remain in place for other importers through at least July 24 unless additional court action occurs.
The ruling follows a February Supreme Court decision that struck down Trump’s earlier “Liberation Day” tariffs imposed under the International Emergency Economic Powers Act. After that loss, Trump invoked the Trade Act to continue imposing tariffs at a reduced 10% rate rather than the 15% level he had previously threatened.
The lawsuit was brought by a coalition of small businesses represented by the Liberty Justice Center. Plaintiffs argued the United States does not face the type of balance-of-payments crisis required under Section 122 to justify emergency tariffs.
Burlap and Barrel, a spice importer involved in the lawsuit, said the tariffs created significant financial burdens for small businesses relying on international supply chains. Legal experts expect the Trump administration to appeal the ruling as trade policy continues to become a major issue ahead of the 2026 elections.
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