U.S. Court Strikes Down Trump's 10% Global Tariffs in Major Legal Blow

Trump's sweeping tariff agenda has hit another legal wall. The U.S. Court of International Trade ruled 2-1 on Thursday against President Donald Trump's 10% global tariffs, which took effect on February 24. The court sided with small businesses that challenged the duties, finding them unjustified under a 1970s trade law. One judge dissented, saying it was too early to grant victory to the small business plaintiffs. The small businesses argued the tariffs were an attempt to bypass a landmark Supreme Court ruling that had already struck down Trump's 2025 tariffs imposed under the International Emergency Economic Powers Act. Trump's February order invoked Section 122 of the Trade Act of 1974, which permits duties for up to 150 days to address serious balance of payments deficits or prevent a sharp drop in the dollar's value. Thursday's ruling found that the law did not apply to the trade deficits Trump cited.