US trade court rejects Trump’s proposed 10% global tariffs<\/figcaption><\/figure>\n<\/div>\nThe US Court of International Trade ruled in favor of small businesses challenging the tariffs, which took effect on February 24. The ruling was 2-1, with one judge saying it was too early to grant a victory to the small business plaintiffs.<\/p>\n
Small businesses had argued that the new tariffs were an attempt to circumvent a landmark ruling by the US Supreme Court that struck down the Republican president’s 2025 tariffs imposed under the International Emergency Economic Powers Act.<\/p>\n
In his February order, Trump invoked Section 122 of the Trade Act of 1974, which allows for up to 150 days of duties to correct serious “balance of payments deficits” or prevent imminent depreciation of the dollar.<\/p>\n
Thursday’s court ruling found the legislation was not an appropriate measure to address the type of trade deficit Trump cited in his February order.<\/p>\n
“This decision is an important victory for American companies that rely on global manufacturing to deliver safe and affordable products. Unlawful tariffs make it harder for businesses like ours to compete and grow,” said Jay Foreman, CEO of toy maker Basic Fun!<\/p>\n
“We are encouraged by the court’s recognition that these tariffs exceed the President’s authority. This decision brings needed clarity and stability to companies navigating global supply chains,” he said in a statement.<\/p>\n
The Trump administration had argued that a serious balance of payments deficit existed in the form of a $1.2 trillion annual US goods trade deficit and a current account deficit of 4% of GDP. <\/p>\n
But some economists and trade lawyers argue that the US is not on the cusp of a balance of payments crisis, making the new duties vulnerable to legal challenge.<\/p>\n
“Being able to choose your own time to say goodbye is a pleasant experience.”<\/p>\n<\/p><\/div>\n