May 8, 2026 — The U.S. Court of International Trade has ruled U.S. President Donald Trump’s use of Section 122 to enact a 10 percent tariff across all nations is illegal, though collection of duties will continue for most states and businesses.
Trump announced in February that he planned to impose the 10 percent tariff using Section 122 after the U.S. Supreme Court invalidated his previous sweeping tariff action. Trump had previously justified tariffs on almost every country in the world, announced on his “Liberation Day” in 2025, using the International Emergency Economic Power Act (IEEPA), and after that was ruled out by the court, he switched tactics to Section 122 of the Trade Act of 1974.