A federal court has ruled against the new global tariffs that U.S. President Donald Trump imposed after a stinging loss at the Supreme Court.

A split three-judge panel of the Court of International Trade in New York on Thursday (May 7, 2026) found the 10% global tariffs were illegal after small businesses sued.

The court ruled 2-1 that Mr. Trump overstepped the tariff power that Congress had allowed the President under the law. The tariffs are "invalid" and "unauthorised by law", the majority wrote.

Tariffs in trouble: On the U.S. Supreme Court and Donald Trump

The third judge on the panel found the law allows the President more leeway on tariffs.