A second federal court ruling against President Trump's tariff strategy is creating fresh uncertainty for importers, manufacturers and freight markets. The U.S. Court of International Trade struck down a second round of 10% global tariffs imposed by the Trump administration after the U.S. Supreme Court ruled in February that the president lacked authority under the International Emergency Economic Powers Act to enact sweeping worldwide duties.
The split 2-1 ruling found Trump exceeded the tariff authority delegated by Congress under Section 122 of the Trade Act of 1974, which the administration used to replace the broader tariffs invalidated earlier this year. The court described the tariffs as 'invalid' and 'unauthorized by law,' according to the ruling.
The latest tariffs were temporary 10% duties applied globally and scheduled to expire July 24. The administration imposed them after the Supreme Court struck down broader double-digit tariffs Trump had placed on nearly every country in 2025.
The ruling directly blocks tariff collection from the plaintiffs in the case — the state of Washington, toy company Basic Fun! and spice importer Burlap & Barrel — although legal experts said additional importers are likely to seek refunds and broader relief.
This ruling will open the door for more companies to request that the tariffs be thrown out and that any payments they've made be refunded,
The latest tariffs were temporary 10% duties applied globally and scheduled to expire July 24.
