Trade court rules Trump’s 10% global tariffs illegal

A federal court on Thursday ruled that President Trump’s latest round of 10 percent global tariffs is illegal. 

Catch up quick: On April 2, 2025, referred to as “Liberation Day,” the president imposed sweeping tariffs on countries across the globe, citing trade deficits as a national security threat and invoking the International Emergency Economic Powers Act (IEEPA), which he argued granted him the authority to act. 

• This February, the Supreme Court declared those tariffs illegal, setting off a complicated effort to refund $166 billion to importers who’d paid them. 
• Trump immediately claimed a different legal authority — Section 122 of the Trade Act of 1974 — to impose a new, global 10 percent tariff. 
• Now, the U.S. Court of International Trade has deemed those, too, to be invalid, saying he didn’t meet the legal threshold to invoke powers under the decades-old law. 

What we’re watching: President Trump told reporters that his administration would find “a different way” to impose tariffs, and the administration is expected to appeal Thursday’s ruling. 

• Meanwhile, it has launched two investigations under Section 301 of the Trade Act of 1974, which could allow it to impose tariffs on foreign governments engaged in “unfair” acts that burden U.S. commerce.  
• Over the past month, such investigations were initiated into 60 countries, including Mexico, China, Canada, South Korea, and Thailand — the U.S.’s top five foreign suppliers of HVAC equipment.