The U.S. Court of International Trade ruled 2-1 against the tariffs on Thursday, May 7, 2026, finding that they were not justified under the 1970s law cited in their implementation. The decision blocks the tariffs from being implemented against two companies and the state of Washington, and orders defendants to implement the decision within five days, with importers who sued in the case to receive refunds.

The tariffs were imposed by President Trump in February, shortly after the Supreme Court struck down many of his global tariffs, and were meant to deal with balance of payments deficits, citing Section 122 of the Trade Act of 1974.

The Trump administration could appeal the trade court's decision, which marks the latest complication in Trump's tariffs agenda.

The ruling has significant implications, as U.S. officials have opened new investigations into dozens of trading partners over forced labor and overcapacity concerns, which could lead to fresh tariffs or other action. The Court of International Trade's decision will be implemented within five days, and the Trump administration is expected to respond to the ruling in the coming days. The court will likely face further challenges to the tariffs in the near future.