May 14th, 2026 – A second federal court ruling against President Trump’s tariff strategy is adding new uncertainty for importers, manufacturers and freight markets, while the administration simultaneously increases pressure on the European Union and faces mounting calls from automakers to preserve the U.S.-Mexico-Canada Agreement.
Last Thursday, the U.S. Court of International Trade struck down another round of 10% global tariffs imposed by the Trump administration after the U.S. Supreme Court ruled earlier this year that the president lacked authority under the International Emergency Economic Powers Act to impose broad worldwide duties.
In a split 2-1 decision, the trade court ruled that the tariffs were unlawful and exceed the authority granted by Congress under Section 122. The case was brought by 24 states and a group of importers challenging the administration’s use of Section 122 of the Trade Act of 1974 to implement a global 10% tariff on most imports.
The ruling immediately blocks tariff collection from the plaintiffs involved in the case, however the 10% duty remains in effect for importers outside of the case at this time. The administration is anticipated to challenge the ruling through an appeal and request a temporary stay while the case undergoes further judicial review.
The latest legal setback adds another layer of instability for transportation providers and importers already dealing with fluctuating freight demand, changing sourcing strategies and increasing customs compliance costs tied to the administration’s evolving trade policies.
According to NPR, the administration argued that the replacement tariffs were justified under a law allowing tariffs in response to balance-of-payments deficits. However, the trade court determined that the necessary economic conditions did not exist. NPR also reported that the government is preparing to refund more than $166 billion tied to earlier tariff collections invalidated by the Supreme Court, with initial payments expected to begin this week.
At the same time, the President is intensifying trade pressure on the European Union. In a Truth Social post late last Thursday, he announced that the EU would have until July 4th to ratify its trade agreement with the United States, warning that tariffs would immediately rise to significantly higher levels if the bloc failed to comply.
The remarks followed renewed threats to increase tariffs on European cars and trucks to 25%, with Trump accusing the EU of failing to uphold terms of a trade agreement negotiated in Scotland last year. European Commission President Ursula von der Leyen responded by reaffirming the EU’s commitment to implementing the agreement and said negotiations toward tariff reductions were making good progress ahead of the July deadline.
Meanwhile, seven major automotive trade groups urged the Trump administration to extend the USMCA trade pact with Mexico and Canada, according to a report first published by Reuters. The organizations, representing automakers, dealers and suppliers including General Motors, Toyota, Volkswagen, Tesla and Hyundai, argued that the agreement remains essential to maintaining North American manufacturing competitiveness.
The groups cautioned against breaking the agreement into separate bilateral trade deals, warning that doing so would create unnecessary complexity, increase administrative burdens, establish conflicting regulatory systems and weaken the supply chains the agreement was designed to support. The concerns were outlined in a letter sent to U.S. Trade Representative Jamieson Greer.
The push comes ahead of a July 1st review deadline for the six-year-old trade pact, with formal bilateral negotiations between Mexico and the United States expected to begin later this month in Mexico City. Automakers have increasingly warned that Trump’s 25% Section 232 tariffs on imported vehicles and parts are disrupting the highly integrated North American automotive supply chain developed over decades under NAFTA and later USMCA.
For freight markets, the latest legal and geopolitical trade developments are expected to continue driving volatility in cross-border trucking volumes, customs brokerage activity and sourcing decisions across industries ranging from automotive manufacturing to consumer goods.
As of Thursday, SONAR’s Truckload Tender Volume Index, a real-time indicator measuring the percentage of loads carriers reject from shippers, stood at 13.24%, approximately 13% higher year over year. The data points to significant capacity tightening ahead of the peak import season, which typically runs from July through August.
