Trump Pursues Third Global Tariff Regime After Court Defeats

The Donald Trump administration is pursuing a third attempt to implement global tariffs after two previous efforts were declared unlawful by U.S. courts. In February 2026, the Supreme Court struck down the original "Liberation Day" reciprocal tariffs. Subsequently, on May 7, the U.S. Court of International Trade ruled that a 10% across-the-board tariff imposed under Section 122 of the Trade Act of 1974 was invalid because the administration cited trade deficits rather than the legally required balance-of-payments conditions.

To prevent a flood of lawsuits from importers and maintain trade leverage, the Justice Department sought a pause on the trade court's ruling. The U.S. Court of Appeals for the Federal Circuit issued an administrative stay on May 12, allowing the government to continue collecting the 10% duty while the legal challenge proceeds. These tariffs are set to expire in late July unless extended by Congress.

Simultaneously, the administration has launched a new strategy under Section 301 of the Trade Act. The U.S. Trade Representative has initiated investigations into 16 major trading partners for structural excess capacity and 60 other economies over forced labor enforcement. These probes cover more than 99% of U.S. imports. The administration aims to have this replacement regime in place by late July, though officials acknowledge that further legal challenges are inevitable.