A panel of judges at the United States Court of International Trade ruled Thursday that Donald Trump’s 10% global tariffs imposed under Section 122 of the Trade Act of 1974 were “unauthorized by law.”
In a 2-1 ruling, the court found the administration lacked sufficient legal justification to impose the tariffs under Section 122, which allows temporary import surcharges under certain international payments conditions.
The decision applies only to the plaintiffs in the case, including spice importer Burlap and Barrel, toy company Basic Fun and the State of Washington. The ruling directs the administration to stop collecting the tariffs from those parties and refund prior payments.
The court said the presidential proclamation imposing the tariffs did not identify “large and serious United States balance-of-payments deficits” as Congress intended when it enacted Section 122 in 1974.
The opinion said the administration relied on trade deficits, current account deficits and investment position data to support the tariffs. The judges also noted that Congress holds constitutional authority over tariffs and taxation, while presidential tariff powers must remain within limits delegated by lawmakers.
Trump Saya ‘Nothing Surprises Me’ with Courts
Trump reacted to the ruling Thursday night and said his administration would “do it a different way,” Reuters reported.
“Nothing surprises me with the courts,” Trump told reporters, according to Reuters. “We get one ruling, and we do it a different way.”
The administration is expected to appeal the ruling.
The White House did not immediately respond to Benzinga‘s request for comment.
Tariff Fight Continues
The latest decision follows a Supreme Court ruling earlier this year that blocked Trump’s broader tariff framework under the International Emergency Economic Powers Act.
Following that decision, Trump announced a new 10% global tariff under Section 122 before later saying the rate would increase to 15%.
Trump said in a Truth Social post in February that the increase would take effect immediately and described the earlier Supreme Court ruling as “ridiculous” and “poorly written.”
He also said the administration would spend the following months developing what he called legally permissible tariff schedules.
According to recent U.S. Customs and Border Protection filings submitted to the trade court, businesses continue filing tariff refund claims through the government’s CAPE system, short for Consolidated Administration and Processing of Entries.
CBP said more than 75,000 refund requests had been submitted as of late April. Court filings also showed roughly $127 billion in tariff payments could qualify for refunds under existing rulings.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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