U.S. Federal Trade Court nullifies Trump's 10% global tariff

On May 8, the U.S. Federal Trade Court ruled 2‑1 that President Donald Trump’s proclamation of a 10 percent global tariff was unlawful. The court held that the administration exceeded the authority granted under Section 122 of the 1974 Trade Act, which was meant for limited balance‑of‑payments crises, not for modern trade deficits.

Judges Mark A. Barnett and Claire R. Kelly wrote that the government failed to satisfy the statutory conditions, warning that a broad interpretation could give the president virtually unlimited tariff power. Judge Timothy Stansbury dissented, arguing the court should not question presidential economic decisions. The ruling can be appealed to the Federal Circuit and may ultimately reach the Supreme Court. Earlier this year the Supreme Court had already struck down a previous Trump tariff scheme.