A panel of judges at the Court of International Trade ruled 2-1 that President Trump cannot use the Trade Act of 1974 to impose 10% tariffs.
President Trump threatens EU with higher auto tariffs amid trade tensions
President Donald Trump has threatened to raise tariffs on European Union cars to 25%, claiming the European Union is “not abiding by trade agreements.”
In another blow to President Donald Trump’s trade policies, a federal court has ruled against the 10% worldwide tariffs he imposed this year to replace tariffs handed down by the Supreme Court.
A panel of judges at the Court of International Trade ruled 2-1 that President Trump was not justified in imposing a 10% tax under the Trade Act of 1974.
The trade law allows provisional tariffs for up to 150 days to address a large “balance of payments deficit.” The justices ruled that President Trump’s tariff order “does not demonstrate that the necessary conditions have been met.”
A group of 24 states challenged the tariffs, along with New York spice importer Burlap & Barrel and Florida toy company Basic Fun!. But the court ruled that most states lacked legal standing to sue, and simply blocked collections from the companies and Washington state.
“This decision is an important victory for American companies that rely on global manufacturing to provide safe and affordable products. Unlawful tariffs make it difficult for companies like ours to compete and grow,” CEO Jay Foreman said in a statement.
President Trump has indicated he will not be deterred by the ruling.
Asked about the court’s decision on May 7, President Trump said, “Nothing in the court surprises me. Nothing surprises me.” “That’s why we always do it differently. When we get a verdict, we do it differently.”
The ruling came after the Supreme Court overturned a pillar of President Trump’s policy during his second term. It declared his use of emergency powers to enact tariffs unconstitutional. President Trump enacted a comprehensive levy to reorder trade relations with countries around the world, citing the International Emergency Economic Powers Act of 1977.
Tariffs have become a central part of President Trump’s economic policy, and he has used them as a weapon to push for new trade deals. Following the Supreme Court’s Feb. 20 order on emergency tariffs, he slammed the ruling, calling it “extremely disappointing.”
“I’m ashamed, absolutely ashamed, that some members of this court don’t have the courage to do what’s right for our country,” Trump said.
President Trump announced the 10% tariffs on the same day the Supreme Court ruled on his other tariff programs. This applied to most imports, but President Trump exempted certain products, including beef, tomatoes, oranges, pharmaceuticals, cars and some critical minerals. Products covered by trade agreements with Canada and Mexico were also excluded.
Contributor: Bart Jansen, Reuters
