Court Nixes Trump's Steel Tariffs

Trade Court Rejects Trump Tariffs The U.S. Court of International Trade on May 7, 2026, invalidated a second round of global tariffs imposed by the Trump administration. This decision follows a prior U.S. Supreme Court ruling that outlawed the administration's initial import taxes, marking a significant victory for importers and a setback for the former administration's trade policy.

The trade court determined that the legal basis used for the replacement tariffs, which permits duties in response to large and persistent balance-of-payments deficits, was not applicable. The court found that the necessary conditions for invoking this specific statute were not met at the time the tariffs were imposed. The tariffs were initially challenged by a pair of importers and the state of Washington.

The invalidated tariffs were scheduled to expire in July. The initial emergency tariffs had resulted in tens of billions of dollars in costs for importers, with an estimated $166 billion in refunds now expected to be disbursed, with the first payments anticipated next week. The Trump administration continues to explore alternative legal avenues for imposing tariffs.