Trump appeals latest court loss on tariffs as chaos and uncertainty amp up

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Trump administration on Friday appealed court ruling that 10 per cent global tariff imposed in February was not justified by 1970s trade law

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Mark Magnierin New YorkPublished: 6:29am, 9 May 2026US President Donald Trump filed an appeal on Friday after the latest legal setback to his signature tariff policy, piling on more chaos and global uncertainty and setting up a new tussle over billions of US dollars in refunds.

The appeal follows a decision on Thursday by the US Court of International Trade that invalidated his use of a Section 122 trade provision that saw him slap 10 per cent import taxes on nearly every country on earth. In its ruling, the court found that he failed to meet the “large and serious” trade deficit test required under the 1974 statute.

Section 122 was something of a stopgap until he could impose tougher provisions, so its impact will be capped.

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“That said, psychologically and politically, the ruling is still a setback for the Trump administration,” said Yilun Zhang, trade manager at the Institute for China-America Studies. “It forces the White House to scramble for alternative tariff authorities and reinforces the perception that the administration’s tariff toolkit is becoming more legally constrained.”

And Trump does not like to be constrained.

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US appeals court allows Donald Trump’s tariffs to stay in effect

US appeals court allows Donald Trump’s tariffs to stay in effect

The hindrance comes as Trump heads to Beijing for a summit with Chinese President Xi Jinping, where trade will be high on the agenda, even as his domestic and international agenda faces growing headwinds. These include the Iran war, rising gas prices and declining poll numbers.

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