Overview
- The U.S. Court of International Trade on Thursday struck down President Trump’s 10% global import levy as unlawful and ordered collected duties refunded, finding he misused a 1974 law that allows short‑term tariffs only for proven balance‑of‑payments crises.
- The decision follows February’s Supreme Court ruling that curbed emergency‑based tariffs, further limiting the White House’s ability to impose broad duties without Congress even as the government weighs an appeal.
- Hours before the court’s move, Trump posted a July 4 ultimatum on Truth Social after a call with Ursula von der Leyen, warning that EU tariffs would jump to “much higher” rates if Brussels has not implemented last August’s framework by then.
- EU talks to implement the pact remain unresolved after negotiators from the Parliament and member states failed to reach a compromise, with lawmakers pushing for a sunset by March 31, 2028 and powers to suspend preferences if the U.S. falls short; the next round is set for May 19 in Strasbourg.
- Importers are preparing refund claims through a U.S. Customs portal opened earlier for illegal duties, but companies report heavy paperwork and long waits, and German industry groups warn that higher U.S. auto tariffs could pull low‑cost models from showrooms and disrupt investment plans.