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Court Blocks Trump’s 10% Global TariffsOn May 9, 2026, the U.S. Court of International Trade issued a 2‑1 decision overturning President Donald Trump’s recently imposed 10 % across‑the‑board tariffs, ruling that the measure exceeded the authority granted by the 1974 Trade Act.Court Ruling Highlights Limits of the Trade Act of 1974The tariffs were enacted under Section 122 of the Trade Act, which permits duties for up to 150 days to address “serious balance‑of‑payments deficits.”Three judges heard the case; two found the law inapplicable to the deficits cited, while one dissenting judge called the ruling premature.Small‑business plaintiffs argued the tariffs violated a 2025 Supreme Court decision that struck down similar measures under the International Emergency Economic Powers Act.Numbers Behind the Tariff Dispute: $1.2 Trillion Deficit and 4% GDP GapThe administration claimed a $1.2 trillion annual U.S. goods‑trade deficit.It also cited a current‑account deficit equal to 4 % of GDP.Economists note that these figures do not constitute an imminent balance‑of‑payments crisis.Implications for U.S. Manufacturers and Global Supply ChainsThe decision is being hailed as a win for companies that rely on imported components. Jay Foreman, CEO of toymaker Basic Fun, said the ruling “provides needed clarity and stability for companies navigating global supply chains.”Tariff‑affected sectors can now resume normal pricing without the added 10 % cost.Potential boost to consumer prices and competitiveness of U.S. products abroad.What the Decision Means for Future Trade PolicyLegal experts predict that the ruling will set a precedent limiting presidential use of Section 122 for broad, non‑targeted tariffs. Lawmakers may seek legislative clarification, and future administrations could face tighter judicial scrutiny when invoking emergency trade powers.

The US Court of International Trade is hearing oral arguments in a case aimed at overturning President Donald Trump's global import tariffs. The tariffs, which were imposed in February, have been met with opposition from several US states and small businesses.The plaintiffs, including 24 mostly Democratic-led states and two small businesses, argue that the 10% global import tax sidesteps a Supreme Court ruling that invalidated most of Trump's previous tariffs. They claim that the tariffs are based on archaic authority meant to protect the US dollar from sudden depreciation in the 1970s, not to address routine trade deficits.Oregon's lawyer, Brian Marshall, told the judges that they should block the tariffs rather than let them expire on the normal 150-day timeline, to prevent Trump from invoking laws to keep them indefinitely. "[If] we have a successive series where there's always tariffs in place, that's a problem," Marshall said.The Trump administration has argued that the global tariffs are a legal and appropriate response to a persistent trade deficit caused by the fact that the US imports more goods than it exports. "President Trump is lawfully using the executive powers granted to him by Congress to address our country's balance of payments crisis," White House spokesperson Kush Desai said.The case is significant as it challenges Trump's use of Section 122 of the Trade Act of 1974, which authorises duties of up to 15% for up to 150 days on imports during "large and serious United States balance-of-payments deficits" or to prevent imminent depreciation of the dollar.

US President Donald Trump has announced that countries supplying Iran with military weapons will face immediate 50% tariffs on all goods sold to the United States, with no exemptions. This move comes hours after Trump agreed to a two-week ceasefire with Tehran.In a social media post, Trump stated that 'A Country supplying Military Weapons to Iran will be immediately tariffed, on any and all goods sold to the United States of America, 50%, effective immediately. There will be no exclusions or exemptions!'However, experts have raised questions about the legal authority behind Trump's announcement, as the Supreme Court struck down his use of the International Emergency Economic Powers Act (IEEPA) to impose broad global tariffs in February. The IEEPA has been used extensively for decades to back financial sanctions against Iran, Russia, and North Korea.Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, told Al Jazeera that 'it's a lot more complicated to do that after IEEPA was struck down. There's no immediate policy lever and authorisation that is available for the US to do that. So they need either an act of Congress or need to adapt some other trade tool.'Trump did not specify which countries could face punitive tariffs, but China and Russia have helped Iran build military capacity to counter US and Israeli pressure. The US imports from Russia have fallen sharply since the invasion of Ukraine in 2022 and the wave of financial sanctions imposed on Moscow.Josh Lipsky, vice president and chair of international economics at the Atlantic Council, said that 'this is a China-related threat, the way I read it. And China will read it that way.' However, he also noted that Trump was unlikely to follow through with new tariffs in the near term because that would derail his planned trip to Beijing to meet with Chinese President Xi Jinping in mid-May.