Federal Court Strikes Down Trump’s Global Tariffs

By Blessing Nweke

A federal court on Thursday ruled against President Donald Trump’s latest global tariffs, marking another major legal defeat for the administration’s trade agenda after an earlier setback at the Supreme Court.

In a 2-1 decision, a three-judge panel of the U.S. Court of International Trade found that the temporary 10% worldwide tariffs imposed under Section 122 of the Trade Act of 1974 were unlawful. The court said Trump exceeded the authority granted to the president by Congress and declared the tariffs “invalid” and “unauthorized by law.”

The ruling followed a lawsuit brought by the state of Washington and two businesses, Burlap & Barrel and Basic Fun!, a toy company. Judge Timothy Reif dissented, arguing the law provided the president broader authority over tariffs.

The administration is expected to appeal the decision to the U.S. Court of Appeals for the Federal Circuit, with the case potentially returning to the Supreme Court of the United States.

The disputed tariffs were introduced after the Supreme Court in February struck down broader tariffs Trump had imposed using the 1977 International Emergency Economic Powers Act. The high court ruled that law did not authorize sweeping import taxes tied to trade deficits.

Jay Foreman, CEO of Basic Fun!, welcomed Thursday’s ruling, saying the company was “extremely excited” by the outcome.

Trade lawyer Dave Townsend said the decision could encourage more importers to seek refunds and challenge the tariffs in court.

Despite the ruling, the Trump administration is pursuing new investigations into trade practices involving countries including China, European Union, Japan and Nigeria.