The U.S. Court of International Trade on Thursday ruled against President Donald Trump's latest 10% global tariffs, determining that the across-the-board duties were not justified under a 1970s trade law. The decision came in response to a challenge by small businesses affected by the tariffs, which took effect on February 24.
Court Ruling Details
The ruling was split 2-1, with one judge stating that it was premature to grant victory to the plaintiffs. The small businesses had argued that the new tariffs were an attempt to circumvent a landmark U.S. Supreme Court decision that struck down Trump's 2025 tariffs, which were imposed under the International Emergency Economic Powers Act.
Legal Basis Challenged
In his February order, Trump invoked Section 122 of the Trade Act of 1974. This provision allows for duties lasting up to 150 days to correct serious "balance of payments deficits" or prevent an imminent depreciation of the dollar. However, the court found that this law was not an appropriate basis for the trade deficits cited by Trump in his order.
The ruling marks another legal setback for the Trump administration's trade policies, which have faced numerous court challenges. The small business plaintiffs celebrated the decision, stating that it protects them from what they called an overreach of executive authority.
