U.S. Court Strikes Down Trump’s 10% Global Tariff After Washington, Burlap & Barrel Lawsuit

A federal trade court ruled Thursday that President Donald Trump’s 10% global tariff on most U.S. imports was illegal after small businesses sued, dealing another legal setback to the White House’s trade policy.

The Court of International Trade in New York found Trump overstepped the tariff power Congress allowed under Section 122 of the Trade Act of 1974, and the majority wrote the tariffs were “invalid” and “unauthorized by law.”

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The ruling came after the Supreme Court struck down even broader double-digit tariffs imposed last year on almost every country on Earth, and the new tariffs were set to expire July 24.

The court’s decision applied directly to three plaintiffs—the state of Washington and two businesses, spice company Burlap & Barrel and toy company Basic Fun!—while it left open whether other importers would have to keep paying.

In a separate account of the same decision, El Confidencial said the court concluded Trump used “de forma incorrecta” a decades-old trade law to apply tariffs indiscriminately to imports from almost all the world.

The administration is expected to appeal, and NBC News reported the case would first go to the U.S. Court of Appeals for the Federal Circuit in Washington and then potentially to the Supreme Court.

Trump reacted to the ruling by telling reporters, “Nothing surprises me with the courts,” and adding, “We get one ruling, and we do it a different way.”

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NBC News also quoted Jeffrey Schwab, director of litigation at the Liberty Justice Center, saying, “It’s not clear’’ whether other businesses would have to continue to pay the tariffs.

NPR similarly described the decision as limited to two importers who challenged the tariffs and the state of Washington, with Jeffrey Schwab saying, “That's a very good question and one we've sort of been wrestling with.”

Both outlets tied the legal fight to money already collected, with NBC News noting that the ruling could open the door for refunds and NPR saying the government now plans to refund more than $166 billion, with first payments expected next week.

The court’s decision also raised the likelihood that Trump may have to pay back money collected under the illegal duties, as The New York Times reported that a refund process is already underway for roughly $166 billion collected under Trump’s prior set of sweeping tariffs.

“Bloomberg — The 10% global tariffs imposed by President Donald Trump were ruled illegal by a federal trade court, marking a new setback for his administration's economic agenda, several months after the U”

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The New York Times said the ruling “appeared to place, for now, new limits on Mr. Trump’s trade powers,” while also noting it only explicitly blocked collection from small businesses and some states that had sued.

El Confidencial framed the legal boundary around Section 122 by saying the law allows tariffs of up to 15% for a maximum of 150 days, after which continuity depends on authorization from the Congress.

Axios reported that the court entered a permanent injunction but only for the plaintiffs in the case, and said the administration is widely expected to seek a stay from the Federal Circuit before it takes effect.

The stakes extend beyond the immediate 10% tariff, because Axios said there is already a “plan C” in place: the Section 301 investigations that are already underway, including one focused on laws against forced labor and another on the capacity of other countries to manufacture.