A U.S. federal court has invalidated President Donald Trump's 10% global tariffs, with a split decision from the Court of International Trade in New York on May 7, 2026. The three-judge panel ruled 2-1 that the tariffs exceeded presidential authority under U.S. trade law, declaring them 'invalid' and 'unauthorised by law.' The action was brought by the state of Washington and two small businesses, Burlap & Barrel and Basic Fun!, which challenged the legality of the levies.

The tariffs were imposed after the Supreme Court on February 28, 2026, rejected Trump's use of the International Emergency Economic Powers Act to justify broader tariffs. The administration then invoked Section 122 of the Trade Act of 1974 to impose the 10% duties, which were set to expire July 24, 2026. The court's ruling applies directly to the three plaintiffs, leaving uncertain whether other importers must continue paying the tariffs.

The U.S. government is expected to appeal the decision to the U.S. Court of Appeals for the Federal Circuit. Separately, the Office of the U.S. Trade Representative is conducting two investigations that could lead to new tariffs: one into alleged overproduction by 16 trading partners, including China and the EU, and another into forced labor practices across 60 economies responsible for 99% of U.S. imports.