The U.S. Court of International Trade ruled on Wednesday, May 7, 2025, that President Donald Trump's 10% global tariffs are unlawful. A three-judge panel found that the across-the-board tariffs, imposed in February on most imports, were not justified under a 1970s trade law. The ruling came in a lawsuit brought by small businesses and the state of Washington, and the court blocked the tariffs for those plaintiffs.
The tariffs were put in place days after the U.S. Supreme Court struck down Trump's previous round of sweeping duties, which he had called "Liberation Day" tariffs. The new 10% levy was intended to replace them.
In its decision, the trade court determined that the president lacked the legal authority to impose such broad tariffs under the relevant statute. The court's order applies directly to the challengers, but its reasoning raises questions about the legality of the tariffs for other importers.
Following the ruling, Trump issued a new deadline for the European Union to implement terms of a trade deal, stating that tariffs could be raised to "much higher levels" if the EU does not comply. The administration has consistently argued that tariffs are necessary to protect American industries and address trade imbalances.
The decision marks another legal challenge to the administration's trade policies, after the Supreme Court earlier vacated the "Liberation Day" tariffs. The administration may appeal the trade court's ruling.
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