A US trade court has ruled against President Donald Trump’s 10% global tariffs, calling the import duties unlawful and delivering another setback to his trade policies.
The US Court of International Trade said the Trump administration had wrongly used a 1974 trade law to impose the tariffs on imports from several countries. According to the court, the law could only be applied during a serious balance-of-payments emergency and not simply to address trade deficits.
The tariffs were introduced earlier this year after Trump’s broader tariff measures faced legal challenges. The administration had argued that the duties were necessary to protect American industries and reduce dependence on foreign goods. However, businesses and importers claimed the tariffs increased costs and disrupted supply chains.
The legal challenge was brought by companies including toy maker Basic Fun! and spice importer Burlap & Barrel, along with the State of Washington. They argued that the tariffs unfairly raised prices and created uncertainty for businesses relying on imported products.
In its ruling, the court said the administration had exceeded its authority. However, the order currently applies only to the companies involved in the case and Washington state, meaning the tariffs will continue for other importers while appeals continue.
The decision is being seen as an important moment in the debate over presidential powers in trade policy. Legal experts say the ruling could limit how future administrations use emergency or temporary trade laws to impose broad tariffs without congressional approval.
The Trump administration is expected to appeal the judgment and may look at alternative trade laws to continue tariff measures. Officials have reportedly been exploring other legal routes to maintain protectionist trade policies.
Also Read: Congress keeps Kerala CM choice in suspense
