Federal Court Blocks Trump’s 10% Tariff Under Section 122, But Fight Isn’t Over

The courts have once again stepped in to check President Trump’s reckless trade policies. On May 7, the U.S. Court of International Trade ruled in a 2-1 decision that the 10% tariff imposed under Section 122 of the Trade Act of 1974 is unlawful. This tariff was meant to replace duties the Supreme Court struck down earlier this year. While the ruling stops the administration from collecting these tariffs from Washington state and two companies that challenged the policy, the tariffs remain in place for most importers as the appeal proceeds.

U.S. Trade Representative Jamieson Greer confirmed the administration’s plan to appeal immediately, expressing confidence despite legal setbacks. Greer framed tariffs as essential tools to “safeguard the economy,” promising to comply with court orders but refusing to change the president’s aggressive trade stance. This defiance comes as economists warn the legal grounds for these tariffs are shaky at best.

Boston College economics professor Brian Bethune called the appeal a “long shot,” noting that similar tariff attempts under the International Emergency Economic Powers Act already failed in court. The conditions required to justify Section 122 simply do not apply, making the administration’s legal arguments tenuous.

Despite this ruling, the Trump administration retains other mechanisms to impose tariffs, notably Section 301 of the 1974 Trade Act. This provision allows tariffs in response to foreign government actions deemed harmful to U.S. commerce, following investigations. Greer has announced ongoing Section 301 probes targeting multiple countries and the European Union, signaling tariffs will remain a central pillar of Trump’s economic agenda.

Industry experts expect the overall tariff burden on American businesses and consumers to stay high or even increase. Drew DeLong, head of corporate statecraft at Kearney Foresight, predicts that if the Section 301 investigations proceed as planned, the effective tariff rate by year’s end could match or exceed 2025 levels.

What this means for everyday Americans is clear: higher prices, disrupted supply chains, and continued economic uncertainty driven by the administration’s trade wars and legal brinkmanship. The courts may slow Trump’s tariff blitz, but the fight over who pays the price for these policies is far from over.