The US Court of International Trade has ruled that a temporary 10% global tariff introduced by President Donald Trump earlier this year is illegal.
In its opinion, the court said the proclamation used to implement the tariff was invalid and that the duties were unauthorized by law.
The case combined separate lawsuits against tariffs imposed in February under Section 122 of the Trade Act of 1974.
The court found that the administration’s justification did not meet the criteria required under Section 122 and described the government’s interpretation of the statute as too expansive.
However, the court did not issue a universal stay on tariff collection. Instead, it granted injunctive relief to two importers, Burlap and Barrel and Basic Fun, as well as the State of Washington through the University of Washington.
The importers had shown that they had either already paid the duties or would be forced to do so imminently.
The ruling raises potential refund and reliquidation questions for importers, though the next legal steps remain uncertain. Trade experts expect the case to move to appeal.
