US Court Cancels Trump's Global Tariffs, White House Economic Agenda Hit

REPUBLIKA.CO.ID, WASHINGTON – The United States Court of International Trade on Thursday (7/5) ruled to reject the 10% global tariffs imposed by President Donald Trump’s administration earlier this year. The decision represents a new blow to one of Trump’s main economic agendas.

Those tariffs were set to take effect in February 2026 to replace Trump’s reciprocal import duty policy targeting nearly all US trading partners, including fentanyl-related tariffs on products from China, Canada, and Mexico.

Trump had previously announced the comprehensive tariff policy based on different legal authority, after the Supreme Court overturned the country-specific tariffs he imposed on 20 February 2026.

However, in a 2-1 decision, a panel of federal judges at the US Court of International Trade in New York stated that the government’s use of Section 122 of the Trade Act of 1974 to impose the 10% tariffs lacked a strong legal foundation.

That section does grant the president authority to impose duties of up to 15% for a maximum of 150 days to address a large and serious balance of payments deficit. However, no previous US president has ever used Section 122 to implement trade tariffs.

Last year, Trump also used the International Emergency Economic Powers Act of 1977 to impose double-digit tariffs without congressional approval.

The Supreme Court subsequently ruled that Trump had exceeded presidential authority when using that emergency legislation, as taxation policy is a legislative prerogative under the US Constitution.

This latest trade court decision is seen as potentially complicating the Trump administration’s trade strategy amid global economic uncertainty and international trade tensions.