Trump Tariffs Struck Down Again: What the Section 122 Court Ruling Means for Your Wallet

# Trump Tariffs Struck Down Again: What the Section 122 Court Ruling Means for Your Wallet

> **Quick answer:** On May 7, 2026, a federal trade court ruled that Trump's 10% global import tariff — imposed under Section 122 of the Trade Act of 1974 — is illegal. The court found the White House used the wrong economic measurement to justify the surcharge. For now, the injunction only protects two small businesses and Washington state. But the tariffs expire July 24, 2026 regardless, and a refund portal is open for affected importers. Prices for most consumers remain unchanged until the legal landscape is fully resolved.

Trump's tariffs have now been struck down twice in less than three months. The Court of International Trade's May 7 ruling is more than a legal footnote — it chips away at the executive branch's ability to reshape trade policy without Congress, and it carries real consequences for businesses, importers, and ultimately everyday shoppers. Here is what actually happened, why it matters, and what you should watch next.

## What the Court Ruled — and Why It's a Big Deal

A three-judge panel at the U.S. Court of International Trade in Manhattan ruled 2-1 on May 7 that the administration's 10% universal import surcharge is unlawful under Section 122 of the Trade Act of 1974.

Section 122 allows a president to impose temporary tariffs of up to 15% for up to 150 days — but only when the United States is experiencing "large and serious" balance-of-payments deficits. The White House justified the tariff by citing the current account balance and the goods trade deficit, which reached record levels in early 2026.