A federal trade court struck down the Trump administration's 10% universal tariffs on Wednesday, ruling that the sweeping levies imposed on goods from virtually all countries exceeded the president's legal authority. The decision represents one of the most significant judicial challenges to the administration's aggressive trade agenda since it took office.

The court found that the administration's use of emergency economic powers to justify the broad tariffs was not supported by law. The ruling could have immediate implications for the wide range of imported goods subject to the tariffs, though legal experts noted the administration is likely to seek a stay of the decision while it pursues an appeal.

The Trump administration had imposed the universal tariffs earlier in 2026 as part of a broad effort to reshape U.S. trade relationships and encourage domestic manufacturing. Officials argued the tariffs were a legitimate exercise of executive authority under national emergency statutes, a rationale the court rejected.

The ruling adds to a series of legal challenges the administration has faced over its use of emergency powers to enact sweeping policy changes without congressional approval. Business groups and trading partners had filed suits arguing the tariffs were economically damaging and legally unjustified. The administration has vowed to defend its trade agenda vigorously in the courts.