Topline
President Donald Trump’s 10% global tariffs are illegal, the U.S. Court of International Trade ruled Thursday, delivering another strike against the cornerstone of the president’s economic agenda after the Supreme Court rejected his controversial “Liberation Day” tariffs in February.
The ruling was handed down Thursday evening.
Photo by BRENDAN SMIALOWSKI/AFP via Getty Images
Key Facts
The court ruled against Trump in a 2-1 vote, with the majority taking the side of small businesses that brought the lawsuit against the president.
The court specifically found Trump did not properly invoke Section 122 of the Trade Act of 1974, which gives the president power to impose tariffs for up to 150 days to address “large and serious” balance-of-payments deficits and prevent depreciation of the U.S. dollar in foreign markets.
The Trump administration is expected to appeal the ruling, which temporarily stops it from imposing global tariffs.
The 10% global tariffs were Trump’s answer to the Supreme Court shooting down his sweeping “Liberation Day” tariffs imposed last year, with the high court finding them unlawful in a 6-3 vote.
Crucial Quote
“Section 122 allows tariffs only when there are ‘large and serious balance-of-payment deficits,’” Oregon Attorney General Dan Rayfield, who was among a group of Democratic attorneys general backing the plaintiffs, said in a statement. “But no such thing exists—a trade deficit is not a balance-of-payment deficit. As the court ruled, the President’s tariffs proclamation ‘is invalid, and the tariffs imposed on Plaintiffs are unauthorized by law.’”
This is a developing story. Check back for updates.
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