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Big Setback To Trump: US Trade Court Rules Against 10% Global Tariffs

A three judge panel of the Court of International Trade in New York gave a split verdict, stating that the global tariffs were illegal.

Big Setback To Trump: US Trade Court Rules Against 10% Global Tariffs
Image: AI Generated

US President Donald Trump's 10% global tariffs were declared unlawful by a US federal trade court, marking the latest setback to the administration's economic policy, just months after a loss in the US Supreme Court.

A three judge panel of the Court of International Trade in New York gave a split verdict, stating that the global tariffs were illegal, under a 1970s trade law, but blocked the duties only for two private importers and the State of Washington, news agency Reuters reported.

In a 2-1 majority, the said that Trump overstepped his authority to impose tariff, which the Congress allowed the president under the law. The court said that the tariffs are "invalid" and "unauthorised by law".

ALSO READ: India-US Trade Talks To See Momentum After May 8 Hearing On Section 301 Investigations | Profit Exclusive

It further noted that Trump's tariffs imposed under Section 122 of the Trade Act of 1974 was misguided. However, one of the judges said it was to early to grant victory to the complainant.

This ruling applies to the set of tariffs due to expire in around two months, which is the latest trade blow to the Trump administration that comes a week before his meeting with Chinese President Xi Jinping in Beijing.

Trump blamed the trade court's ruling on "two radical left judges".

"So, nothing surprises me with the courts. Nothing surprises me," he told reporters after  in Washington. "We get one ruling and we do it a different way."

Meanwhile, the Trump administartion still plans to continue with birad tariffs on major trading partners by using a third law, that has resisted several legal hurdles, Section 301 of the Trade Act of 1974, which covers unfair trade practices.

ALSO READ: India May See Up To $12 Billion In US Tariff Refund-Linked Gains As Claims Window Opens

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