However, the ruling is distinctly narrow…
President Donald Trump’s latest attempt to revive broad-based tariffs just hit another legal wall.
On Thursday, the U.S. Court of International Trade ruled that Trump’s 10% global tariffs — imposed earlier this year under Section 122 of the Trade Act of 1974 — were unlawful. The court found the administration stretched the law beyond what Congress intended.
The ruling is significant for two reasons:
- It’s the second major judicial rejection of Trump’s tariff strategy in just a few months.
- It exposes a growing constitutional fight over how much unilateral economic power presidents should actually have.
And despite the headlines, this story isn’t nearly as simple as “court blocks tariffs.”
What The Court Actually Said
After the Supreme Court struck down Trump’s earlier tariffs in February — those imposed under emergency powers law known as IEEPA — the administration pivoted to a different legal mechanism: Section 122 of the 1974 Trade Act.
That statute allows temporary tariffs of up to 15% for 150 days during a “large and serious balance-of-payments deficit.”
The administration argued America’s persistent trade deficits justified the move.
The court disagreed.
In a 2-1 ruling, judges said trade deficits alone do not meet the threshold Congress envisioned when it passed the law decades ago.
Translation: the White House tried using an old, narrowly written law as a workaround after losing the first tariff case — and the court wasn’t buying it.
But The Tariffs Aren’t Fully Dead Yet
Here’s where the story gets more complicated.
The ruling was surprisingly narrow.
The court only granted direct relief to two small business plaintiffs and the State of Washington.
That means tariffs may still continue temporarily for many importers while appeals move forward.
The administration has already signaled it will appeal aggressively.
U.S. Trade Representative Jamieson Greer said the White House believes it will ultimately prevail and criticized the ruling as legally flawed.
What Happens Next
Even with the ruling, the trade agenda is expected to keep moving.
The administration is likely to lean more heavily on alternative tools, including Section 301 investigations focused on unfair trade practices and industrial overcapacity.
So while the decision may slow momentum, it is unlikely to halt it entirely.
READ NEXT: Trump Foe Comey Scores Unexpected Court Win
