The U.S. Court of International Trade ruled that President Donald Trump's latest 10% global tariffs, imposed under Section 122 of the Trade Act of 1974, are illegal but only blocked them for three importers: two small businesses and Washington state.
Key Takeaways
A federal court ruled that President Trump's global tariffs are illegal but only blocked them for specific importers. The decision leaves most tariffs in place until their expiration in July.
- U.S. Court of International Trade rules Section 122 tariffs illegal
- Tariffs remain for all except two private importers and Washington state
- Trump administration appeals the ruling, expects to prevail
- Decision sets stage for legal battle over billions in refunds
The court's 2-1 decision leaves the temporary tariffs in place for all other importers while any appeal by the Trump administration plays out. The tariffs are expected to expire on July 24 unless extended by Congress, as reported by Reuters. The ruling marks another setback for Trump's global tariff ambitions and comes just a week before he is due to discuss trade tensions with Chinese President Xi Jinping.
The court ruled that Trump's imposition of the tariffs under Section 122 was misguided, noting that the tariffs had brought on 'economic harm.' The panel ordered the Trump administration to implement the decision within five days and issue refunds plus interest for all tariffs paid by businesses.
The court declined to issue an injunction blocking the tariffs for all importers, rejecting a request from a group of 24 states led mostly by Democrats. According to HuffPost, Trump blamed the decision on 'two radical left judges' and said the administration would continue collecting most of the 10% tariffs until they expire.
The ruling sets the stage for another protracted legal battle over billions of dollars' worth of tariff refunds. The Trump administration has already appealed the decision, with U.S. Trade Representative Jamieson Greer expressing confidence in prevailing in the appeal, per Reuters. Additionally, Trump announced he would give the European Union until July 4 to implement trade deal commitments before raising tariffs on EU goods, including cars.
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