A US trade court has ruled against Donald Trump’s 10% global tariffs, declaring them unlawful under a 1970s trade law. The US Court of International Trade, in a 2-1 decision on Thursday, sided with small businesses that challenged the tariffs, which took effect on 24 February.
The small businesses argued 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. Trump had invoked Section 122 of the Trade Act of 1974, which permits duties for up to 150 days to address serious balance of payments deficits or prevent dollar depreciation.
The court found that the law was not appropriate for the trade deficits cited by Trump in his February order. One judge dissented, stating it was premature to grant victory to the plaintiffs.
Meanwhile, Trump announced on Thursday he would give the European Union until 4 July to implement trade deal commitments, or face “much higher” tariffs on EU goods, including cars. 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 implementing legislation has been slow in the European Parliament.
