The US Court of International Trade ruled against the Trump administration’s sweeping 10 percent global tariff in a 2-1 decision on Thursday.

The majority stated that the tariffs are “invalid” and “unauthorized by law,” calling for the administration to halt collecting tariffs from the plaintiffs and refund prior payments. The court’s decision applied to three of the plaintiffs, the state of Washington and two businesses, spice company Burlap & Barrel and toy company Basic Fun, while dismissing the others due to lack of standing. The decision only applies to plaintiffs the court ruled in favor of.

The 10 percent tariffs were imposed in February under Section 122 of the Trade Act of 1974, which permits a president to levy a tariff not exceeding 15 percent for a period of 150 days in order to correct an “international balance-of-payments disequilibrium.” The new tariffs were enacted following a Supreme Court decision ruling against Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA).

Trump called the Supreme Court decision “deeply disappointing” and said he was “ashamed” of some of the Supreme Court Justices. At the same time, he said that the administration would initiate several investigations of unfair trade practices under Section 301 of the Trade Act. Section 301 enables the president to take all appropriate action, including tariff and non-tariff action, to obtain the removal of a policy or practice of a foreign government which burdens or restricts US commerce. To take such actions, the United States Trade Representative (USTR) must first conduct an investigation and determine that the action is in fact discriminatory.

There are currently four ongoing investigations under Section 301 into over 70 countries, accounting for 99 percent of US imports. This includes two started in 2025, one of which is targeting Brazil and a second investigating commitments made under the 2020 “Phase One” agreement by the People’s Republic of China. Two more were commenced in 2026 following the Supreme Court decision. The first looks at whether 16 US trading partners, including the European Union, China and Japan, are overproducing goods, driving down US prices. The second is looking at whether 60 countries are doing enough to prohibit the trade in products produced by forced labor.

The administration is expected to appeal the decision of the US Court of International Trade, if it does so, then the case will move to the US Court of Appeals for the Federal Circuit.