A US trade court has ruled that former President Donald Trump improperly used a 1970s trade law to impose temporary 10% global tariffs, delivering another setback to his trade strategy.
However, the court’s decision only blocks the tariffs for two private importers and the State of Washington, allowing the levies to remain in place for most other importers while the Trump administration appeals the ruling.
The US Court of International Trade said Trump’s use of Section 122 of the Trade Act of 1974 was not appropriate for addressing the trade deficits cited in his policy. The tariffs are currently set to expire in July.
The ruling comes just months after the US Supreme Court struck down another round of Trump-era tariffs imposed under emergency powers legislation.
Despite the latest decision, the Trump administration plans to continue pursuing broader tariffs through Section 301 of the same trade law, which targets unfair trade practices. Several investigations under that provision are expected to conclude in July.
The businesses involved in the case, including toy company Basic Fun! and spice importer Burlap & Barrel, argued the tariffs exceeded presidential authority and created uncertainty for companies relying on global supply chains.
Legal experts expect the case to continue through the appeals process, potentially reaching higher federal courts in the coming months.