A federal trade court ruled on May 7 that Trump's 10% global tariff violates the Trade Act of 1974 and is illegal. This is the second major court defeat for Trump's tariff strategy in 2026 — the Supreme Court struck down his first round in February, and he attempted to replace them with these new 10% tariffs under different legal authority. The ruling issued a permanent injunction, though it narrowly applies to the specific businesses and Washington state that sued — not a nationwide block on all tariff collection.