Federal Trade Court Strikes Down Trump’s 10% Global Tariffs as Unlawful

AOL.com reported Sunday that the US Court of International Trade has again declared President Donald Trump’s 10% global tariffs unlawful. The ruling, handed down May 5 in a 2-1 decision, granted a permanent injunction blocking the levies. It marks the second major legal defeat for the administration’s tariff strategy this year.

A Court Blocks the Tariffs

The three-judge panel found that Trump had failed to meet the legal criteria required to impose the new duty. The court entered summary judgment in favor of a 24-state coalition led by Oregon. Oregon Attorney General Dan Rayfield called the outcome a major win for consumers and the Constitution, vowing further legal action if the administration continued to pursue what he characterized as unlawful taxation.

Also Read: What the Trade Act of 1974 Actually Says About Presidential Tariff Power

Background: A Pattern of Legal Setbacks

The ruling follows a February Supreme Court decision that also went against the White House. In that 6-3 ruling, the justices found Trump had overstepped his authority by invoking the 1977 International Emergency Economic Powers Act to impose earlier tariffs. Oregon had been among 12 states that brought that case.

Rather than abandon the trade agenda, Trump pivoted the same day to Section 122 of the Trade Act of 1974. That provision allows a president to apply temporary tariffs of up to 15% to address significant balance-of-payments deficits. He described the Supreme Court’s original finding as deeply disappointing.

Also Read: Supreme Court Limits Presidential Emergency Trade Powers

What Comes Next for Trade Policy

The new court found that the administration again failed to satisfy the statutory requirements, this time under Section 122. A coalition of 24 states had filed suit on March 5, and the court moved relatively quickly to a final judgment. The administration has not publicly confirmed whether it will appeal.

The consecutive rulings create real uncertainty for businesses relying on trade policy stability. Legal scholars have noted that each failed statutory workaround narrows the president’s remaining options without an act of Congress. The White House has yet to outline a fresh legislative approach to its broader tariff goals.

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