The United States 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 trade law from the 1970s.
Court Ruling Favors Small Businesses
The court ruled 2-1 in favor of small businesses that had challenged the tariffs, which took effect on 24 February. One dissenting judge argued that it was premature to grant victory to the plaintiffs. The small businesses contended that the new tariffs were an attempt to circumvent a landmark Supreme Court decision that had struck down Trump's 2025 tariffs, which were imposed under the International Emergency Economic Powers Act.
In his February executive order, Trump invoked Section 122 of the Trade Act of 1974, a provision that allows for duties for up to 150 days to correct serious "balance of payments deficits" or prevent an imminent depreciation of the dollar. However, Thursday's ruling found that this law was not an appropriate basis for addressing the trade deficits cited in Trump's order.
New Deadline for the European Union
Meanwhile, Trump announced on Thursday that he would give the European Union until 4 July to implement trade deal commitments, warning that he would otherwise raise tariffs on EU goods, including cars, to "much higher levels." In a post on Truth Social, the president said he had issued the new deadline during a "great call" with European Commission President Ursula von der Leyen, during which the two leaders also agreed that Iran must never possess a nuclear weapon.
Last Friday, Trump surprised many by announcing that he would increase tariffs on EU vehicles to 25%, up from the previously agreed 15%, accusing the EU of non-compliance with a deal struck in Scotland last July. That deal required the EU to eliminate tariffs on US industrial goods and provide duty-free quotas on certain US agricultural and seafood products, but the implementing legislation has faced delays in the European Parliament.
