US Trade Court Rules Against Trump’s Global 10% Tariff, Strikes Down Policy Decision

A US federal trade court has ruled against President Donald Trump’s 10% global tariff measure, marking another legal setback for his trade policy framework. The Court of International Trade issued the decision on Thursday, finding that the tariff imposed earlier this year was not justified under the legal authority cited by the administration.

The ruling was delivered by a 2-1 majority and currently applies to the parties involved in the case, including two companies and the state of Washington. While the immediate scope is limited, the judgment could potentially pave the way for broader legal challenges from other importers affected by the tariff regime.The court directed that the defendants implement the ruling within five days and ordered that the importers who brought the case should receive refunds for duties already paid. The decision represents a significant procedural development in ongoing disputes over the scope of presidential authority in trade policy.

The 10% global tariff had been introduced in February following an earlier Supreme Court ruling that struck down a set of broader duties imposed under separate legal provisions. The administration had relied on Section 122 of the Trade Act of 1974, arguing the measure was necessary to address balance-of-payments concerns. However, the court rejected this justification, stating that the conditions required under the law were not met.

Also Read: Trump Says Iran Must Sign Deal “Fast” Or Face More Strikes

Legal experts supporting the challengers argued that the US does not face a balance-of-payments crisis, but rather a trade deficit, and therefore the legal basis for the tariff was not applicable. The administration now has the option to appeal the ruling to a higher court, which could further extend the legal battle over tariff authority.Despite the setback, other sector-specific tariffs imposed by the Trump administration, including those on steel, aluminum, and automobiles, remain unaffected by the ruling and continue to be enforced. However, the decision adds to a growing series of legal complications surrounding the broader tariff strategy.

The ruling comes amid increasing scrutiny of US trade measures, with businesses already seeking refunds following earlier Supreme Court decisions that struck down certain tariffs imposed under emergency economic powers legislation. US Customs and Border Protection had previously estimated that hundreds of thousands of importers could be eligible for compensation tied to overturned duties.As the legal challenges continue, the case underscores the ongoing tension between executive trade actions and judicial limits on tariff authority in the United States.

Also Read: Trump Gives EU Until July 4 To Finalize Trade Deal Or Face Higher Tariffs