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US Trade Court Rules Trump's 10% Universal Tariffs Illegal
Trump Administration's 10% Universal Tariffs Struck Down
The U.S. Court of International Trade ruled on Thursday that President Donald Trump's newest round of 10% across-the-board tariffs were illegal. These duties were imposed to replace those struck down by the Supreme Court, marking another legal setback for the administration's trade policy. The tariffs were enacted under Section 122 of the Trade Act of 1974, a never-before-used provision. The court indicated that an expansive interpretation of the president's power to define trade deficits could grant unlimited tariff authority, infringing on congressional powers.
Court's Rationale and Future Outlook
The court determined that the president's broad interpretation of what constitutes a balance-of-payments deficit oversteps the intent of the law. In a 2-1 ruling, the trade court stated that if the president can select among sub-accounts to identify a balance-of-payments deficit, such a deficit could always be found, essentially allowing the law to be triggered at any moment. The small businesses that brought the suit were represented by the same legal group that successfully challenged the previous tariffs before the Supreme Court. The administration is likely to appeal this decision. Although these duties are set to expire by July 24, the administration has signaled that replacement tariffs may be enacted before then.
*Source: Axios (2026-05-08)*
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