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U.S. Trade Court Strikes Down Trump’s 10% Tariffs as Administration Appeals

The ruling currently applies only to two companies and Washington state.

Overview

  • An International Trade Court panel, ruling 2–1 on Thursday, found the 10% global import tariff unlawful and paused it only for the plaintiffs.
  • Judges said Section 122 of the 1974 Trade Act does not fit the deficits Trump cited, since that law allows only short, temporary tariffs to fix balance‑of‑payments strain or a threatened dollar drop.
  • Trump imposed the tariff in February after an earlier legal defeat, and the administration has now appealed to the Federal Circuit and signaled possible Section 301 investigations that require formal reviews before new duties.
  • The Supreme Court’s February decision voiding prior tariffs under emergency powers set off refunds, with G1 reporting 56,497 importers approved for $127 billion so far out of an estimated $166–175 billion eligible.
  • The tariff order was written to be temporary and could lapse on July 24 without action from Congress, and some coverage says the setback may weaken U.S. leverage before planned talks with China next week.