Federal judges in Washington halted President Trump's plan to slap a 10 percent tariff on most U.S. imports, ruling the move violated existing trade law. The decision follows a Supreme Court strike‑down of earlier tariffs, forcing the administration to seek a fresh legal basis.

The Court of International Trade said Trump misused Section 122 of the Trade Act of 1974, a provision meant for rare, severe balance‑of‑payments crises. The court imposed strict limits on executive tariff authority, undermining the president's strategy to reset trade ties, boost revenues, and spur domestic manufacturing.

The ruling leaves the White House with an uncertain path. An appeal is likely, but a final defeat would force Trump to refund roughly $166 billion already collected from the prior illegal tariffs. Investors now face clearer limits on executive tariff swings that could have reshaped global supply chains.

Market participants will monitor the appellate process closely, as any reversal could reopen debates over the scope of presidential trade powers and the fiscal impact on imported goods. The court's decision signals a tighter check on executive tariffs, tightening the legal framework that businesses rely on for pricing and supply‑chain stability.