Federal court reportedly overturns temporary 10% tariffs
President Donald Trump has once again had tariffs he imposed blocked by a legal decision.
In a split two-to-one decision, the U.S. Court of International Trade in New York has ruled that 10% tariffs Trump imposed on all global imports in February 2026 exceed the tariff authority he is granted as president.
According to the Associated Press, the decision only specifically covers legal challenges against the tariffs brought by state of Washington and two private businesses. Jeffrey Schwab, an attorney who represented the two businesses, told the Associated Press “it’s not clear’’ if this ruling also means other entities will have to keep paying those tariffs, which are scheduled to expire July 24, 2026.
Trump initially set the temporary 10% global tariffs in February 2026 after the U.S. Supreme Court decided in a six-to-three finding that the Trump Administration does not have the authority to unilaterally impose tariffs on imported products under the International Emergency Economic Powers Act, or IEEPA.
In setting the 10% tariffs, Trump cited Section 122 of the Trade Act of 1974. Trump Administration officials have previously indicated they believe the president can still impose most of the tariffs he has put in place using other legal authorizations. Any appeal of the trade court’s decision would first be heard by the U.S. Court of Appeals for the Federal Circuit in Washington, D.C.
Government paying refunds on IEEPA tariffs
This decision follows a March 2026 order from the U.S. Court of International Trade the U.S. government to accept refund requests from businesses, primarily importers but also including some retailers, that have paid IEEPA tariffs.
[READ MORE: Tariff refund portal opens; some retailers may be due billions]
In April 2026, the U.S. Customs and Border Protection launched a digital tool called Consolidated Administration and Processing of Entries (CAPE), available Automated Commercial Environment Secure Data Portal (ACE Portal). Importers and authorized customs brokers can now file CAPE declarations through their ACE Portal accounts, with other companies to be allowed to submit refund requests at a later time.
It is estimated that the U.S. government is liable for repaying a total of $166 billion in tariff refunds, plus interest. According to CNBC, analysis from Citi indicates several major U.S. retailers and brands are eligible to be repaid millions and even billions of dollars they paid due to the overturned tariffs. These include Walmart ($10.2 billion), Target ($2.2 billion), Nike ($1 billion back), Kohl's ($550 million), Gap ($400 million) and Macy's ($320 million).
