In a significant legal blow to former President Donald Trump's trade agenda, the United States Court of International Trade delivered a decisive ruling on Thursday. The court found that the sweeping 10% global tariffs, which had been in effect since late February, were implemented illegally.
The decision came in response to a challenge mounted by a group of small American businesses. They argued that the tariffs were an improper attempt by the administration to circumvent a landmark 2025 Supreme Court ruling. That earlier decision had struck down tariffs Trump had imposed under the International Emergency Economic Powers Act.
In its February decree, the Trump administration had invoked Section 122 of the Trade Act of 1974. This specific provision allows the government to impose tariffs for a period of up to 150 days. The stated purpose is to address "serious balance-of-payments deficits" or to prevent an imminent devaluation of the US dollar.
The court's panel of judges reached its conclusion with a 2-1 vote. The majority sided with the small businesses, agreeing that the tariffs were not lawfully enacted. However, the dissenting judge offered a contrasting view, suggesting that it was premature to grant a victory to the businesses at this stage of the legal process.
This ruling effectively halts the collection of the broad-based tariffs that had been applied to imports from numerous countries. The legal victory for the small businesses underscores the ongoing tension between executive trade actions and judicial oversight in the United States.
The case highlights the complex legal framework governing international trade and the specific limits placed on presidential authority. While the president has tools to address trade imbalances, the court's decision reaffirms that these tools must be used within the strict confines of existing law.
For the businesses that brought the lawsuit, the ruling represents a major win against what they viewed as an overreach of executive power. The decision sends a clear message about the boundaries of tariff authority under the cited 1974 statute.
Based on reporting from g1.