A US trade court on Thursday ruled that temporary tariffs imposed by President Donald Trump on imports from around the world in February are unlawful.
The US court of international trade in New York ruled in favour of small businesses that challenged the temporary 10% tariffs, declaring the measure "to be invalid as contrary to law."
Trump had misinterpreted the trade law used as the basis for the tariffs, the court found. Neither the US government nor US Customs and Border Protection (CBP) may collect import duties from the plaintiffs - including the state of Washington. Furthermore, the court ordered that any tariffs already collected be refunded.
The court found that the US government had failed to sufficiently demonstrate the "fundamental international payments problems" required by the Trade Act of 1974 used to justify the measure. Trump's executive order also cited trade and current account deficits, while the law requires balance-of-payment deficits.
Since February 24, 2026, the US has imposed a 10% tariff on most imports. Trump had threatened to raise that rate to 15%. That would be the maximum rate the president is permitted to impose for 150 days under the 1974 Trade Act. However, even months after the threat, no such proclamation can be found in the Federal Register.
In February, the Supreme Court had ruled that Trump had exceeded his authority with another set of tariffs, which he imposed at the beginning of his second presidential term in January 2025 and that relied on emergency legislation dating back to 1977.
