Court Blocks Trump 10% Universal Tariffs – Legal Blow to Trade Strategy

Trump 10% universal tariffs ruled illegal by Trade Court

The U.S. Court of International Trade issued a permanent injunction on Thursday, declaring President Trump’s latest 10% surcharge on imports unlawful. ↓ 10% duties will continue to be collected while the administration pursues an appeal.

Legal backdrop

Trump invoked the seldom‑used Section 122 of the 1974 Trade Act on the same day the Supreme Court knocked down his earlier tariffs. The provision permits a temporary levy of up to ↑ 15% for 150 days to remedy a “large and serious” balance‑of‑payments deficit.

“If the President can pick any sub‑account to claim a deficit, the statute becomes a blank check,” the panel wrote.

Small‑business plaintiffs—a spice importer and a toy retailer—were represented by Liberty Justice Center, the same firm that helped win the prior Supreme Court victory. The court dismissed the standing claims of 23 of 24 state attorneys general, finding their alleged harms too indirect.

White House spokesman Kush Desai insisted the administration “used tariff authority lawfully” and is reviewing options, while trade lawyer Tim Brightbill warned of a “Plan C” involving ongoing Section 301 investigations. Reuters reported that the tariffs are set to expire on ↓ July 24, but replacement measures may arrive before then.

Dispatch from Eleanor Cross (Chief Washington Correspondent).