The US Court of International Trade on Thursday ruled against President Donald Trump’s 10% global tariffs, finding that across-the-board duties were not justified under a 1970s trade law. The 2-1 decision favoured small businesses that challenged the tariffs, which took effect on 24 February.
The small businesses argued the new tariffs were an attempt to bypass a landmark US Supreme Court decision 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 depreciation of the dollar.
Thursday’s ruling found that the law was not appropriate for the trade deficits cited in Trump’s order. One judge dissented, saying it was premature to grant victory to the plaintiffs.
Separately, Trump said on Thursday he would give the European Union until 4 July to implement trade deal commitments, or face higher tariffs on EU goods, including cars, raised to “much higher levels”. The president announced on Truth Social that he issued the deadline after a “great call” with European Commission President Ursula von der Leyen, during which they also agreed Iran should never have a nuclear weapon.
Last Friday, Trump unexpectedly announced he would raise tariffs on EU vehicles to 25% from the previously agreed 15%, citing the EU’s failure to comply 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.
