US Court Declares Trump’s 10% ‘Baseline Tariff’ Illegal

A U.S. international trade court in New York has ruled that President Donald Trump’s 10% “baseline tariff” imposed on countries trading with the United States is illegal. The court holds a status equivalent to a federal high court in trade matters.
In a decision issued Thursday, a three-judge panel of the Court of International Trade described the baseline tariff as “unlawful,” stating that the International Emergency Economic Powers Act (IEEPA) — the law Trump relied on to impose the tariffs — does not grant the president authority to introduce such measures.
Two judges supported the ruling, while the third judge dissented, arguing that the baseline tariffs were not inconsistent with the IEEPA.
According to U.S. media reports citing court sources, if the Trump administration wants to challenge the ruling, it must first appeal to the U.S. Court of Appeals for the Federal Circuit in Washington. If the administration loses there as well, its final option would be the Supreme Court of the United States.
Trump announced the tariff policy on April 2, 2025, under the authority of the International Emergency Economic Powers Act of 1977. Under that policy, the administration imposed a 10% baseline tariff on all countries maintaining trade relations with the United States, along with additional “reciprocal tariffs.”
The reciprocal tariffs were later widely used during trade and diplomatic disputes involving countries such as China, India, Canada, Mexico, and Brazil.
Reports say the tariff measures generated approximately $1.335 trillion in additional revenue for the United States over the past year.
Earlier, on February 20, 2026, the U.S. Supreme Court also ruled Trump’s tariff policy unlawful, saying the administration had improperly used the IEEPA law to impose tariffs. The court stated that tariffs introduced under that authority were therefore invalid.
Following the Supreme Court decision, Trump criticized the ruling and, on the same day, introduced another temporary 10% tariff on imports from nearly every country under the authority of the Trade Act of 1974. In a written statement, Trump said the temporary tariffs would remain in effect for 150 days.
According to the timeline announced by the president, the temporary 10% tariff is scheduled to expire on July 24, 2026.