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When US trade court says no: The limits of presidential tariff authority

The Trump administration has now lost its two boldest legal theories for unilateral, across-the-board tariffs

    • Importers across the US are watching closely; if the ruling is upheld and broadened, the universe of refund claims could be enormous.
    • Importers across the US are watching closely; if the ruling is upheld and broadened, the universe of refund claims could be enormous. PHOTO: NYTIMES
    Published Mon, May 11, 2026 · 12:00 PM

    FOR the second time this year, a US federal court has told the Trump administration that it cannot tariff its way around the Constitution.

    On May 7, a three-judge panel of the US Court of International Trade ruled 2-1 that the 10 per cent across-the-board duty the president had imposed in February was unauthorised by law.

    The decision is narrow in its immediate reach, since only the small-business plaintiffs who sued are entitled to refunds and exemptions, but its implications are anything but.