The US Court of International Trade has ruled against Donald Trump’s 10% global tariffs, finding that the across-the-board duties were not justified under a 1970s trade law. The 2-1 decision on Thursday sided with small businesses that challenged the tariffs, which took effect on 24 February.
The small businesses argued that the tariffs were an attempt to bypass a landmark Supreme Court ruling that struck down Trump’s 2025 tariffs imposed under the International Emergency Economic Powers Act. In his February order, Trump invoked Section 122 of the Trade Act of 1974, which allows duties for up to 150 days to correct serious balance of payments deficits or prevent an imminent dollar depreciation.
The court found that the law was not appropriate for the trade deficits cited by Trump. One dissenting judge said it was premature to grant victory to the plaintiffs.
Separately, Trump announced on Thursday that he would give the European Union until 4 July to implement trade deal commitments, or face higher tariffs on EU goods, including cars, to “much higher levels”. In a Truth Social post, Trump said he issued the deadline after a “great call” with European Commission President Ursula von der Leyen, during which they also agreed that Iran must never have a nuclear weapon.
Last Friday, Trump unexpectedly raised tariffs on EU vehicles to 25% from 15%, citing non-compliance with a deal struck in Scotland last July. That deal required the EU to cut tariffs on US industrial goods to zero and provide duty-free quotas on certain US farm and sea produce, but implementation has been slow in the European Parliament.
