Court Strikes Down Trump’s Illegal 10 Percent Global Tariff, Orders Refunds for Plaintiffs

In a sharp rebuke to the Trump administration’s trade policies, the US Court of International Trade ruled on Thursday that the sweeping 10 percent global tariff imposed by Trump is “invalid” and “unauthorized by law.” The court ordered the administration to halt collecting these tariffs from three plaintiffs—the state of Washington, spice company Burlap & Barrel, and toy maker Basic Fun—and to refund any payments already made.

These tariffs, slapped on imports in February under Section 122 of the Trade Act of 1974, were meant to address an “international balance-of-payments disequilibrium.” But the court found the administration had overstepped its legal authority. The ruling applies only to the plaintiffs who brought the case, with other claims dismissed for lack of standing.

This decision follows the Supreme Court’s earlier rejection of Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to justify tariffs, underscoring the administration’s repeated attempts to sidestep legal constraints. Trump responded with outrage, calling the Supreme Court “deeply disappointing” and vowing to pursue new investigations under Section 301 of the Trade Act—a process that requires formal investigations and findings of discriminatory practices before imposing tariffs.

Currently, the administration is conducting four Section 301 investigations targeting over 70 countries, including major US trading partners like China, the European Union, Japan, and Brazil. These investigations focus on issues ranging from overproduction driving down US prices to forced labor concerns. But critics see these moves as yet another attempt to wield tariffs as blunt tools without proper legal or economic justification.

The administration is expected to appeal the court’s ruling, which would move the case to the US Court of Appeals for the Federal Circuit. Meanwhile, this decision highlights the ongoing chaos and harm wrought by Trump’s trade war gambits—policies that have driven up consumer prices, disrupted global supply chains, and rewarded corporate cronies while punishing American workers.

This ruling is a crucial step toward holding the administration accountable for its unauthorized and damaging trade actions. It exposes the administration’s pattern of ignoring the law to push aggressive tariffs that destabilize the economy and undermine democratic checks on executive power. We will continue to track these developments and demand transparency and accountability for all trade policies that impact American lives.