The U.S. Court of International Trade in New York held a hearing on Wednesday, Sept. 30, 2026, to consider a legal challenge against President Donald Trump’s tariffs on 60 trading partners. The administration imposed the duties in late July, citing a failure by those nations to prevent imports made with forced labor. A group of 25 Democratic-led states and four small businesses filed the lawsuits, which have since been consolidated, arguing that the president exceeded his legal authority.
The legal dispute follows a Feb. 20, 2026, Supreme Court ruling that struck down previous global tariffs imposed by the Trump administration. The Court found that the president could not use the International Emergency Economic Powers Act (IEEPA) to unilaterally apply duties to all trading partners. Following that ruling, the administration applied a temporary 10% global tariff under a different law. When those expired, it invoked a new legal basis for the forced labor tariffs.
The challenged tariffs range from 10% to 12.5% and apply to more than 99% of all goods imported into the United States, including products from China and the European Union. Plaintiffs in the case argue that the administration used the term "forced labor" as a pretext to regain broad tariff powers without conducting legitimate investigations. The Trump administration stated in court documents that it performed investigations into each of the 60 nations and concluded that the trade actions were warranted.
The outcome of this case affects business owners and consumers in at least 25 U.S. states who purchase imported goods from trading partners like China and the EU. The policy covers more than 99% of all imported goods with duties of 10% to 12.5%. The legal decision will also set a precedent for how the executive branch can use specific trade laws in light of restrictions set by the Supreme Court.
The case was heard by a three-judge panel appointed by Presidents Trump, Barack Obama, and Joe Biden. While the hearing took place on Sept. 30, 2026, the court is not expected to issue a ruling immediately. A written decision will be released following the proceedings. The next steps for the tariffs depend on this ruling, which could either allow the 10% to 12.5% duties to remain in place or lead to them being halted.