United States’ 10% tariffs ruled illegal: Decision Highlights Trump’s Floundering Approach

Editorial

15:53 JST, May 9, 2026

Another ruling of illegality has been issued in connection with U.S. President Donald Trump’s signature high-tariff policy. This comes as a fresh blow to the administration at a time when its management is reaching a dead end due to such issues as the turmoil over the situation in Iran.

On Thursday, the U.S. Court of International Trade ruled that the uniform 10% tariffs recently imposed by the U.S. government on countries and regions around the world are illegal.

In April last year, the U.S. government shocked the world by invoking “reciprocal” tariffs based on the International Emergency Economic Powers Act. However, because the Supreme Court ruled those tariffs illegal in February, the administration introduced the new tariffs as an alternative measure.

Section 122 of the U.S. Trade Act, which the Trump administration used as the legal basis for the new tariffs, stipulates that tariffs can be imposed to address concerns in the event that there are large and serious U.S. balance-of-payments deficits.

However, the latest ruling concluded that the alternative tariffs lack a legal basis. Procedures to refund the reciprocal tariffs to businesses have already begun. The confusion is only deepening.

The balance of payments at the center of the case is an economic statistic summarizing overall transactions with foreign countries, including those related to the import and export of goods, services, and dividends and interest on investments.

Section 122 of the Trade Act was enacted in the 1970s against a backdrop of struggles with currency defense following the Nixon Shock, caused by the suspension of the convertibility of the dollar into gold, among other factors.

Today, however, the U.S. economy remains remarkably strong despite recording a huge trade deficit. There is no serious depreciation of the dollar, nor has the country lost its ability to pay its foreign debts. The Court of International Trade apparently took these circumstances into account.

Under the U.S. Constitution, the authority to impose tariffs rests, in principle, with Congress. The president is granted this authority only under certain conditions.

The repeated rulings of illegality condemn Trump for disregarding the law, overstepping presidential authority and persisting with his high-tariff measures.

Trump is desperate to play up the achievements of his administration ahead of the midterm elections in November.

The new tariffs were a temporary measure for a maximum of 150 days and thus were scheduled to expire in late July. Separately, the U.S. government has launched a preliminary investigation toward introducing new tariff measures based on Section 301 of the Trade Act.

Public approval for the administration’s economic policies is low, and frustration over exorbitant prices is high. High-tariff policies not only fuel inflation but also increase future uncertainty, which is detrimental to investment in the United States. The administration should not continue the unnecessary cycle of high-tariff measures and court battles.

(From The Yomiuri Shimbun, May 9, 2026)