Trade Court Rules Trump Tariff Replacement Illegal

A federal trade court has ruled that President Trump unlawfully used Section 122 of the Trade Act of 1974 to impose a 10% global tariff after the Supreme Court blocked his broader tariff plan earlier this year.

The U.S. Court of International Trade found the administration’s fallback tariff strategy exceeded presidential authority under the law.  The divided three-judge panel blocked the tariffs for the state of Washington and two companies that challenged the policy, including spice importer Burlap & Barrel and toy maker Basic Fun!.  However, the ruling does not immediately halt the tariffs nationwide, meaning most importers will continue paying the duties while the case moves through appeals.

Judges Mark Barnett and Claire Kelly wrote that Trump’s tariff proclamation “is invalid, and the tariffs imposed on Plaintiffs are unauthorized by law.”

Trade attorney Tim Brightbill called the ruling a “decisive rejection” of the administration’s use of Section 122, though he noted the tariffs will largely remain in effect during the appeals process.

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