A United States trade court has ruled that President Donald Trump’s latest 10% global tariffs are unlawful, dealing a setback to his trade policy agenda.
In a 2–1 decision on Thursday, the U.S. Court of International Trade sided with 24 states and several businesses that had challenged the tariffs in a lawsuit filed earlier in March.
The tariffs, introduced in February, came after the Supreme Court previously struck down Trump’s earlier “Liberation Day” tariffs, ruling that they exceeded presidential authority under the International Emergency Economic Powers Act.
Following that decision, the administration relied on Section 122 of the Trade Act of 1974, which allows temporary tariffs to address balance-of-payments issues for up to 150 days.
However, in a 53-page ruling, the court declared the measure unlawful and said it caused financial harm to affected businesses.
“Defendants do not explain why they should be permitted to continue the unlawful collection of Section 122 duties from Importer Plaintiffs for the duration of the imposition of such duties,” the judges ruled.
The court ordered that tariffs collected from the plaintiffs in the case be stopped and refunded, along with interest. However, it stopped short of issuing a nationwide ban on the tariffs.
Judges also found that the legal justification used by the White House did not meet the requirements of the law, noting that the administration focused on trade and current account deficits rather than the specific economic condition required under Section 122.
Two judges appointed by former President Barack Obama formed the majority, while a judge appointed under former President George W. Bush dissented.
Reacting to the ruling, Trump criticized the court and signaled he would continue pursuing alternative measures.
“Nothing surprises me with the courts,” he said, calling the judges in the majority “radical left.”
“We always do it a different way,” he added. “We get one ruling, and we do it a different way.”
