The Court of International Trade struck down the Trump administration's 10% across-the-board tariff on May 7, according to Axios — the second major judicial defeat on trade policy in 2026, following the Supreme Court's ruling in February that invalidated the prior round of duties. The tariffs are likely to remain in effect pending appeal.
To replace the tariffs the Supreme Court killed, the administration turned to Section 122 of the Trade Act of 1974 — a provision that had never before been invoked — authorizing a temporary surcharge of up to 15% for up to 150 days to address a 'large and serious' balance-of-payments problem. The trade court rejected that legal theory as well.
This is the recurring shape of executive overreach: reach for an untested statutory provision, lose in court, appeal to buy time. Congress wrote Section 122 as a narrow emergency valve, not a standing grant of unlimited tariff authority — and courts are now saying so, twice.