Latest round of global tariffs struck down by U.S. court

The 2-1 ruling by the U.S. Court of International Trade in New York said tariffs are 'invalid' and 'unauthorized by law'

Published May 07, 2026  •  Last updated 27 minutes ago  •  2 minute read

President Donald Trump speaks during an event to announce new tariffs, April 2, 2025, in the Rose Garden at the White House in Washington. Photo by Mark Schiefelbein /AP

A U.S. court cast doubt on the latest round of global tariffs imposed by the White House, ruling that the Donald Trump administration was not justified in imposing replacement duties earlier this year.

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The 2-1 ruling on Thursday by the U.S. Court of International Trade in New York said one of the president’s signature economic policies – 10% across-the-board tariffs – is “invalid” and “unauthorized by law” under the Trade Act of 1974, according to reports.

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The law allows a president to impose tariffs of up to 15% for all imports without the approval of Congress, CNN reported. But that is only if certain thresholds are met, which the judges found were insufficiently reached in this case.

Despite the ruling, only the plaintiffs are exempt from paying the levies and entitled to refunds, CNN reported. They include the State of Washington, spice company Burlap & Barrel, and toy company Basic Fun!, according to The Associated Press.

‘Fought back .. and we won’

“We fought back today and we won and we’re extremely excited,” Basic Fun! CEO Jay Foreman told reporters on Thursday, via The Associated Press.

The tariffs can remain in place until July for all other importers, CNN reported, although the White House is expected to appeal the decision.

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It was unclear how many Canadian companies could be potentially affected by the decision as industry-specific tariffs remain in place.

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Another setback for Trump White House

It was the latest tariff setback for Trump after the U.S. Supreme Court struck down sweeping duties imposed under the 1977 International Emergency Economic Powers Act (IEEPA), which the White House had used to declare a national emergency.

Trump said at the time that the ruling was “deeply disappointing” and “ridiculous,” while adding that the Supreme Court justices were “very unpatriotic and disloyal to our Constitution.”

He then imposed the 10% tariffs that were struck down on Thursday in response.

The U.S. Court of International Trade in New York also ruled in March that companies that paid tariffs under the IEEPA are legally entitled to refunds after the U.S. government collected about $134 billion US in duties last year alone.

— With files from the Toronto Sun and The Associated Press.

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