A federal trade court ruled Thursday against President Donald Trump’s backup tariff strategy, delivering another legal setback to the administration’s broad trade agenda after the Supreme Court previously struck down tariffs imposed under emergency powers authority.
By yourNEWS Media Newsroom
The U.S. Court of International Trade ruled Thursday that President Donald Trump’s 10% global tariff plan was not authorized under federal trade law, siding with small businesses that challenged the administration’s latest tariff program.
The ruling follows a recent Supreme Court decision that invalidated tariffs imposed by the Trump administration under the International Emergency Economic Powers Act, commonly known as IEEPA.
In that 6-3 ruling, the Supreme Court determined the president lacked authority under IEEPA to impose sweeping tariffs through emergency powers.
After the Supreme Court struck down those tariffs, the administration implemented a separate 10% global tariff structure as a fallback approach.
That backup tariff program was challenged in federal trade court by small business plaintiffs who argued the administration exceeded its legal authority under a separate trade statute dating back to the 1970s.
According to Reuters, the U.S. Court of International Trade ruled 2-1 in favor of the businesses.
“The U.S. trade court on Thursday ruled against President Donald Trump’s latest 10% global tariffs, finding across-the-board tariffs were not justified under a 1970s trade law,” Reuters reported.
The ruling found the administration’s blanket tariff approach exceeded what Congress authorized under the statute being used to justify the policy.
One judge dissented, arguing the case was premature and that the plaintiffs should not yet receive judgment.
The legal fight over tariffs has become one of the most significant judicial battles involving Trump’s economic agenda during his current term.
The administration previously sought a 90-day delay on refunding tariff collections following earlier court defeats, but the request was rejected by the appellate court overseeing the matter.
In March, the Federal Circuit Court of Appeals denied the Trump administration’s effort to postpone enforcement tied to the Supreme Court’s tariff ruling.
Separately, Judge Richard Eaton, an appointee of former President Bill Clinton, previously ruled that the administration must begin refunding approximately $130 billion in tariff collections.
The administration has argued throughout the litigation that the tariffs were necessary to protect American industry, strengthen domestic manufacturing and address trade imbalances.
The White House has not yet announced whether it will appeal Thursday’s ruling.
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