A federal trade court ruled that President Donald Trump’s 10% global tariffs imposed under Section 122 of the Trade Act of 1974 were unlawful, marking another setback for the administration’s tariff agenda. The U.S. Court of International Trade found the across-the-board tariffs exceeded the authority granted under the statute, siding with small businesses and several states that challenged the levies.
- The ruling was issued by a divided 2-1 panel at the U.S. Court of International Trade in Manhattan.
- Trump imposed the tariffs in February 2026 under Section 122 of the Trade Act of 1974.
- The court immediately blocked enforcement of the tariffs against the businesses that sued and Washington state.
- The Supreme Court previously struck down separate Trump tariffs imposed under the International Emergency Economic Powers Act.
- The Justice Department may appeal the ruling to the U.S. Court of Appeals for the Federal Circuit.
Relevant Companies
- Walmart ($WMT) – Major importer with broad exposure to global consumer goods supply chains.
- Apple ($AAPL) – Relies heavily on international manufacturing and imported components.
- Target ($TGT) – Large retailer dependent on imported merchandise across multiple categories.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
