The U.S. Court of International Trade on Thursday invalidated President Donald Trump's 10% global tariffs, ruling the president exceeded his authority under Section 122 of the Trade Act of 1974. The 2-1 decision found the tariffs were not justified by the balance-of-payments concerns cited in Trump's February 24 executive order, which applied the duties to nearly all imports entering the United States. The court sided with small business plaintiffs who argued the move circumvented a recent Supreme Court ruling that barred the administration from using emergency powers to impose broad tariffs.

The challenged tariffs were implemented under Section 122, which permits temporary duties to address serious balance-of-payments deficits or prevent currency devaluation. However, the court determined that the administration failed to demonstrate the statutory conditions were met, particularly regarding a threat to the dollar's stability or a structural imbalance in international payments. One judge dissented in part, arguing the case was premature given the ongoing nature of the administration's economic assessment.

The ruling immediately blocks enforcement of the 10% tariff on all countries, affecting a wide range of imported goods. The Commerce Department and U.S. Trade Representative have not yet issued public statements. The administration is expected to appeal the decision, with the next procedural step likely a motions hearing before the full panel within 30 days.