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A three-judge panel at the Court of International Trade ruled 2-1 on Thursday that President Trump's 10% global tariff, enacted under Section 122 of the Trade Act of 1974, is unlawful, marking the second time a Trump tariff regime has been found illegal by federal courts.

A three-judge panel at the Court of International Trade ruled 2-1 on Thursday that President Trump's 10% global tariff, enacted under Section 122 of the Trade Act of 1974, is unlawful, marking the second time a Trump tariff regime has been found illegal by federal courts.

The court found the administration misapplied Section 122, ruling that Trump's proclamation relied on trade deficit figures rather than "balance-of-payments deficits" as Congress defined the term in 1974. The White House said it would appeal and was confident it would ultimately prevail.

The court found the administration misapplied Section 122, ruling that Trump's proclamation relied on trade deficit figures rather than "balance-of-payments deficits" as Congress defined the term in 1974. The White House said it would appeal and was confident it would ultimately prevail.

The ruling ordered a halt to tariff collection and refunds for the plaintiffs — two small businesses and the state of Washington. A refund process for roughly $166 billion collected under Trump's prior tariffs is already underway, with first payments expected soon.

The ruling ordered a halt to tariff collection and refunds for the plaintiffs — two small businesses and the state of Washington. A refund process for roughly $166 billion collected under Trump's prior tariffs is already underway, with first payments expected soon.

Trump responded to the ruling by telling reporters, "We get one ruling, and we do it a different way," signaling his administration would pursue tariffs through other legal avenues, including Section 301 investigations already underway.

Trump responded to the ruling by telling reporters, "We get one ruling, and we do it a different way," signaling his administration would pursue tariffs through other legal avenues, including Section 301 investigations already underway.

The Section 122 tariffs were temporary by statute, capped at 15% and 150 days, and were set to expire in late July. The administration had already been developing longer-term tariffs under Section 301 and Section 232 as replacements.

The Section 122 tariffs were temporary by statute, capped at 15% and 150 days, and were set to expire in late July. The administration had already been developing longer-term tariffs under Section 301 and Section 232 as replacements.

Jeffrey Schwab of the Liberty Justice Center, which represented the small businesses that brought the case, said Section 122 "was passed in response to a specific historical crisis" involving currency and gold reserves — conditions he said do not currently exist.

Jeffrey Schwab of the Liberty Justice Center, which represented the small businesses that brought the case, said Section 122 "was passed in response to a specific historical crisis" involving currency and gold reserves — conditions he said do not currently exist.

Court Rules Trump's 10% Global Tariff Unlawful

USCourt tradeRules court rules against Trump’'s 10% globalGlobal tariffsTariff Unlawful

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