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    Home AMERICAS Panama

    Trump loses key legal battle: Court topples 10% tariff

    The Analyst by The Analyst
    May 8, 2026
    in Panama
    Trump loses key legal battle: Court topples 10% tariff


    The international commercial panorama faces a new legal turn. He International Trade Court of USA ruled this Thursday, May 7, against the global tariff of the 10% imposed by the administration of donald trump.

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    The ruling determines that the application of this tax did not have the necessary justification under the law of the 1970s invoked by the Executive for its implementation.

    This ruling, decided by a vote of two to one, represents a direct legal obstacle to the measure that Trump implemented in February, after the Supreme Court previously cancel a substantial part of its original tariffs.

    According to the government argument, the rate sought to correct deficits in the balance of paymentsbut the court has considered that the use of the regulations was inappropriate.

    Although the ruling is initially limited to the companies that filed the lawsuit, legal experts point out that it establishes a high-impact legal precedent. This opens the door for other importing companies to challenge the surcharges and request a refund of the funds paid.

    The court has been blunt in its deadlines: it ordered the defendants to implement the ruling within a period of five days, also ordering the disbursement of retroactive payments to the affected importers. It should be noted that this decision does not affect specific sector tariffs on steel, aluminum and automobiles.

    For Panama, the ruling comes at a time of uncertainty. While President Trump recently announced his intention to raise the global tariff to 15% under other legal grounds (such as Section 122 of the Trade Act of 1974), the setback in the International Trade Court weakens the legal structure of its protectionist policy.

    In 2025, Panamanian exports to the United States, its main trading partner, exceeded $1.3 billion. Products such as shrimp, bananas and teak have been under the shadow of these tariff fluctuations.

    The local export union, led by the Panamanian Association of Exporters (APEX), maintains an active dialogue to seek exceptions that allow Panama to recover a 0% tariff, similar to the achievements of other countries in the region.





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