US Trade Court Officially Blocks Trump's 10% Trade Tariffs
Jakarta, CNBC Indonesia - The United States trade court delivered a significant blow to President Donald Trump on Thursday (8/5/2026). The court ruled against the 10% global tariffs he imposed after the Supreme Court (SC) overturned many previous import duties.
The 2-1 decision by the US Court of International Trade temporarily blocks the implementation of the tariffs only for two companies and applies in the state of Washington. However, it is believed this could open the door to similar outcomes in the future.
The decision found that Trump’s latest import duties were not justified based on the 1970s legislation cited in their implementation. Trump imposed the temporary 10% import duties in February, shortly after the SC invalidated many of his global tariffs.
It should be noted that Trump’s new tariffs were intended to address the balance of payments deficit, citing Section 122 of the 1974 Trade Act. These tariffs apply only until the end of July, unless extended by Congress.
However, the Trump administration has also been seeking other ways to rebuild its trade agenda after July. US officials have opened new investigations into dozens of trading partners regarding issues of forced labour and overcapacity, alternative methods to impose other tariffs.
“The Thursday decision by the Court of International Trade orders the defendants to implement the decision within five days, and for the importers who sued in this case to receive refunds,” the court stated, as reported by AFP on Friday (8/5/2026).
“The Trump administration may appeal the trade court’s decision,” it added.
Trump’s specific sectoral tariffs on goods such as steel, aluminium, and cars remain unaffected by this legal challenge. However, Thursday’s ruling marks the latest complication in Trump’s tariff agenda.
Since the high court dealt a severe blow to Trump’s economic policies, businesses have also rushed to obtain refunds.
US Customs and Border Protection estimated in March that more than 330,000 importers may be eligible for refunds following the Supreme Court decision.
The previously overturned tariffs were imposed based on the International Emergency Economic Powers Act. Initially, the policy was believed to collect around US$166 billion in import duties and estimated deposits.
“Section 122 was enacted in response to a specific historical crisis that led to the depletion of US currency and gold reserves,” said Jeffrey Schwab, senior counsel at the Liberty Justice Center, after the ruling.
“The United States has a trade deficit, not a balance of payments deficit, and does not have international payment problems,” Schwab said in a statement.