The U.S. Court of International Trade ruled that the Trump administration's 10% Section 122 tariffs imposed on most imports were unlawful, Bloomberg reported on May 7. However, instead of issuing a universal injunction striking down the tariffs, the court only blocked the administration from enforcing them against two companies that sued and the state of Washington.
The court argued that Trump's proclamation imposing the tariffs failed to identify that a balance-of-payments deficit existed and instead used trade and current account deficits "to stand in the place." The court also said that if deficits in the subcomponents of the balance of payments were used to justify tariffs, it would be a significant expansion of the law's intent, since any president could invoke the law unless every single component was in perfect balance. The Trump administration enacted the Section 122 tariffs to replace tariffs imposed under the International Emergency Economic Powers Act, which the Supreme Court struck down in February.