The U.S. Court of International Trade on Thursday struck down the 10 percent global tariffs President Trump imposed in February to replace the levies the Supreme Court voided that same month, ruling 2-1 that the administration lacked authority under Section 122 of the Trade Act of 1974 to tax most imports.

The 53-page decision is the second federal ruling this year against Trump's signature trade policy, and it forces the government to refund, with interest, every dollar collected from Washington and the two businesses that sued. The court did not issue a universal injunction, leaving other importers paying the duty for now and the administration searching for a third statutory path before the levies expire in July.

What the panel ruled

The panel called the Section 122 tariffs "unlawful" and said they had brought "economic harm" to the plaintiffs. The statute allows the president to impose tariffs for 150 days to address "large and serious ... balance-of-payments deficits." The court ruled that Trump's February proclamation instead leaned on the trade deficit and current account deficit, narrower measures the administration itself had acknowledged in court are distinct from the balance of payments.

"Defendants do not explain why they should be permitted to continue the unlawful collection of Section 122 duties from Importer Plaintiffs for the duration of the imposition of such duties," the judges wrote. Two Obama-appointed judges formed the majority; a George W. Bush appointee dissented.

How the case got here

The Supreme Court in February ruled 6-3 that the International Emergency Economic Powers Act did not authorize Trump's April 2025 "Liberation Day" tariffs. Within days, the White House replaced them with a flat 10 percent levy under Section 122, betting the temporary statute would hold while the administration built longer-term cases under other trade laws.

Twenty-four states and a group of small importers sued in March. Among the named plaintiffs is Basic Fun!, the toy company that imports Lincoln Logs and Tonka Trucks. Chief Executive Jay Foreman told NPR he expects about $7 million in refunds from the earlier IEEPA round and now stands to collect on the Section 122 duties as well.

"The administration can take its shot and do what they want, but we can also fight back," Foreman told NPR. "To approach this situation with a bazooka instead of a fine-tooth comb makes no sense."

The refund math

The Treasury already plans to return more than $166 billion to importers who paid under the IEEPA tariffs, with the first payments expected next week, NPR reported. Thursday's ruling adds a second, narrower stream of refunds, though its size is unclear because the order covers only Washington and the two named businesses.

Jeffrey Schwab, the Liberty Justice Center attorney who argued the case, said it was not yet evident whether other importers can stop paying. "That's a very good question and one we've sort of been wrestling with," Schwab told NPR.

The administration's view

Trump, asked about the decision late Thursday, said "nothing surprises me with the courts" and called the judges in the majority "radical left." He signaled the White House would keep searching for a workable tariff vehicle. "We always do it a different way," the president told reporters. "We get one ruling, and we do it a different way."

The White House did not immediately respond to NPR's request for comment. The administration is preparing investigations under separate trade statutes that would allow longer-lasting duties, but those reviews must be completed before any new tariffs can take effect.

The counterpoint

Thursday's reporting on the ruling came from center and lean-left outlets; no right-leaning source was available. The substantive defense of the tariffs came from Trump himself, who attacked the majority judges and signaled the administration will keep testing legal authorities. The dissenting judge, appointed by President George W. Bush, would have upheld the duties; the dissent's reasoning was not summarized in available reports.

The Section 122 clock runs out in July. Whether the administration files a third tariff order before then, and under which statute, is the next question for importers now budgeting around a duty that may or may not be collectible.