Trade court says Trump’s 10% global tariffs are unlawful
US President Donald Trump during a military Mother’s Day event in the East Room of the White House in Washington, DC, US, on Wednesday, May 6, 2026. (Yuri Gripas/Abaca/Bloomberg via Getty Images)
(WASHINGTON) — A federal court on Thursday concluded that President Donald Trump’s global 10% tariffs are unlawful, a decision that the Department of Justice quickly appealed.
In a 2-1 decision, a panel of judges on the Court of International Trade concluded that the Trump administration misread the law used to justify the sweeping tariffs.
The ruling marks the second time the president’s tariff regime has been found to be illegal, with the Supreme Court earlier this year affirming a decision from the Court of International Trade blocking Trump’s first round of tariffs.
Lawyers for the Department of Justice filed a notice of appeal at the Court of International Trade on Friday, signaling plans to challenge yesterday’s ruling.
The United States Court of Appeals for the Federal Circuit in Washington, D.C., handles appeals from the Court of International Trade. The tariffs in question are set to expire in late July and it is unclear if the court will hear the case in time to meaningfully rule on the issue.
The immediate impact of Thursday’s ruling is also unclear. The court granted an injunction for two small businesses and the state of Washington; however, the judges dismissed the claims brought by the larger group of states because they lacked standing.
The dispute boiled down to the definition of the phrase “balance-of-payments deficits.” The Court of International Trade rejected the Trump administration’s argument that the term “balance-of-payments deficits” in Section 122 of the Trade Act of 1974 is the same as a “trade deficit.”
“It is clear that Congress was aware of the differences in the words it chose,” the majority wrote.
The judges acknowledged that the term “causes some confusion,” but concluded that the Trump administration’s interpretation was incorrect.
“The Government argues that in today’s world, the current account is the proper component for identifying a balance-of-payments deficit,” the majority wrote. “Problematically for the Government, and as discussed herein, Congress in 1974 identified the settlement, liquidity, and basic balance deficits as ‘balance-of-payments deficits.'”
The global 10% tariff took effect in February and by statute is set to expire in late July.
Fugitive Michael Puckett, the suspect in a Virginia shooting that left a sheriff’s deputy dead and another injured, is pictured here following his capture, May 31, 2026, in Surry County, N.C. (Carroll County Sheriff’s Office)
(MOUNT AIRY, N.C.) — A manhunt for the suspect who allegedly shot two Virginia sheriff’s deputies, one fatally, ended Sunday night when law enforcement officers used a drone to zero in and capture him in North Carolina, authorities said.
Michael Puckett, 55, was allegedly armed with a handgun and ringing the doorbell of a home in Mount Airy, N.C., when officers moved in at about 8:32 p.m. ET and made the arrest, ending an intense three-day search for the fugitive, according to the North Carolina State Bureau of Investigation (SBI).
Puckett’s capture came after the FBI and U.S. Marshals Service offered a combined $60,000 reward for information on his whereabouts.
The Carroll County Sheriff’s Office identified Deputy Logan Utt, a military veteran and a member of the agency since 2023, as the deputy who was killed in the exchange of gunfire with Puckett on Friday night at a home near Richmond, Virginia.
A second Carroll County sheriff’s deputy was injured in the shooting when a bullet struck him in his bulletproof vest, Carroll County Sheriff Kevin A. Kemp said in a statement over the weekend.
Utt and the other sheriff’s deputy were sent to the home around 9:26 p.m. local time to conduct a welfare check when they came in contact with Puckett, who allegedly opened fire on them, Kemp said.
The deputies returned fire as Puckett allegedly fled the scene, Kemp said, who added that a motive for the shooting remains under investigation.
The search for Puckett expanded to North Carolina after the fugitive was spotted on Sunday around 6:56 a.m. ET on a wildlife game camera in Surry County, north of Mount Airy, the Wytheville, N.C., police department said in a statement on Facebook.
North Carolina law enforcement officers swarmed the Mount Airy neighborhood where Puckett was seen, establishing a perimeter and deploying a drone, according to the SBI.
“SBI Agents, utilizing a drone, located the suspect moving from one location to another and made the arrest as he was ringing the doorbell of the residence. The suspect was still armed at the time of arrest,” the SBI said in its statement.
Kemp called Utt a “hero,” whose “lifelong dream” was to become a sheriff’s deputy.
“Deputy Utt was a devoted husband, loving father, cherished family member, friend, and respected member of our law enforcement family,” Kemp said. “His service, courage, and dedication will not be forgotten.”
ABC News’ Benjamin Stein, Matt Foster and Michael Pappano contributed to this report.
President Donald Trump speaks to the press as he departs the White House, May 12, 2026, in Washington. (Kevin Dietsch/Getty Images)
(WASHINGTON) — A federal appeals court on Tuesday temporarily paused a lower court order that declared President Donald Trump’s global 10% tariffs are unlawful.
In an unsigned decision, the U.S. Court of Appeals for the Federal Circuit issued an administrative stay of last week’s decision from the Court of International Trade.
The move, effectively a brief legal time-out, will allow an appeals court panel time to consider equities on both sides of the dispute before considering whether or not to invalidate the tariffs while litigation continues.
The court did not take any position on the merits of Trump’s appeal and is still considering issuing a long-term stay pending appeal.
The same court granted the Trump administration’s request to stay last year’s decision blocking Trump’s first round of tariffs.
Last week, a New York-based trade court concluded that the 10% — imposed by Trump after the Supreme Court blocked his initial tariffs — were similarly unlawful.
The vast empty plains stretch to the horizon in Springfield, Colorado, the county seat of Baca County, on May 10, 2026. Baca County has received only .78 inches of rain since Jan. 1, 2026. (Photo by Mark Makela/Getty Images)
(WASHINGTON) — Farms all over the country are bracing for the impact of drought after months of little precipitation, experts told ABC News.
More than 60% of the continental United States has been under moderate drought or worse conditions since April 7, according to the U.S. Drought Monitor.
The nation as a whole has experienced a dry, warm period that began in the early autumn of 2025 and has pushed into recent weeks, Brad Rippey, a U.S. Department of Agriculture meteorologist, told ABC News.
Long-term drought trends have put Midwest crops at risk
Farms in the Midwest that produce winter wheat have been especially impacted, Rippey said. The largest region that produces winter wheat — the Great Plains stretching from Montana to Texas — has been hit the hardest by drought as well as some spring freezes, Rippey added.
Up to 44% of this year’s winter wheat is rated as very poor to poor, according to the latest data from the USDA’s National Agricultural Statistics Service (NASS), released on Tuesday. Nebraska is at the top of the list, with 82% of its winter wheat crop rated very poor to poor, but states like Colorado, Oklahoma, Texas and Kansas are experiencing high rates of poor crop as well, according to the NASS.
While there was good moisture when the winter wheat was planted in the fall, extremely dry conditions from the beginning of March through the first half of May prevented optimal growing conditions, Brad Fuller, president of the Western Horizons Corporation and a consulting agronomist to many farms in Kansas, told ABC News.
Agriculture experts are expecting a 32% abandonment of winter wheat in the U.S. this year, according to the USDA’s Wheat Outlook. Such a high abandonment rate has only happened once since the Dust Bowl era in 1933 — in 2022 when drought conditions were at record highs, Riddey said.
The issues have also extended to the cattle industry due to poor rangeland and pasture conditions as a result of the dry conditions, Riddey said.
“A lot of the rangeland and pastures out in the middle section of the country are also in pretty rough shape heading into the key hay production season,” Riddey said.
Farmers in the Midwest are holding out hope for the spring-planted crops. But conditions were so dry in recent weeks that some growers skipped planting crops like corn or sorghum, Fuller said.
“We’ve had places in southwest Kansas that have gone well over 200 days without more than a half an inch of rain,” he said.
Farms in the West could be at risk as well
The West is facing dry, hot conditions in the near future, coming off “devastatingly” warm months in March and April, Riddey said. To exacerbate the situation, some reservoirs — especially Lake Mead and Lake Powell, the largest in the country — are experiencing low water levels due to the lack of snowpack during the winter.
These reservoirs are crucial for farms in the West that supply the rest of the country, Steven Fassnacht, a professor of snow hydrology at Colorado State University, told ABC News. About 75% of the nation’s lettuce and leafy greens are grown in California, according to the state’s Department of Food and Agriculture.
When there’s less surface water, farmers in California will turn to groundwater, Amanda Fencl, director of climate science for the Union of Concerned Scientists, told ABC News. But overuse of groundwater can decrease the water quality and lower the groundwater table, causing the land above it to sink. Overuse of groundwater can also alter the soil moisture, making it drier and lower, Fassnacht said.
Lake Mead could reach a record-low level of 1,036 feet of elevation in 2026, according to the 24-month study released by the Bureau of Reclamation last week. Lake Powell is also projected to drop to a new record-low level in the coming months, surpassing the previous record of around 3,520 feet set in 2023, Cody Moser, senior hydrologist at the Colorado River Basin Forecast Center, said during a webinar on May 7. The Colorado River basin as a whole is currently sitting at 49% of storage of its historic average, Riddey said.
“There are a lot of pieces of pie for that limited Western water,” Riddey said.
Small, family-run farms would be most impacted by water shortages, Fencl said. They may be faced with having to take certain crops out of production or changing which crops they decide to harvest.
Drought conditions typically lead to lower yields and loss in profits, Fencl added.
What will climate conditions be like in the near future?
While it has been raining in the Midwest in recent days, it’s not nearly enough to make up for the dry conditions over the last eight months, Riddey said.
“It’s not going to recover from just a couple of rain events,” he said. “It will take some time.”
But there is a light at the end of the tunnel. Monsoon season is expected to start in early July and last through August and September. After that, the development of El Niño conditions in October will bring more drought relief into the fall, winter and spring of 2027, Riddey said.
“All indications are we should see a pretty active monsoon that could provide some relief, but we have to get between now and monsoon onset,” he said.
