US trade court blocks Trump’s 10% global import tariff

A US federal trade court has ruled that President Donald Trump’s 10% global import tariff, imposed under emergency economic powers legislation, was unlawful.

According to Bloomberg, the court sided with small businesses and nearly 20 states that had challenged the measure.

The court immediately ordered a halt to tariff collections with respect to the two plaintiff companies and the state of Washington.

However, the court stopped short of issuing a nationwide injunction. Bloomberg reported that the judges did not consider the other states to be direct importers.

Trump approved the 150-day tariff measure in February. The policy was introduced under emergency international trade authorities and functioned as an additional import tax on top of existing tariffs. The move increased the cost of imported goods for US importers.

Following the ruling, Trump described the judges as “radical leftists.” He said: “Nothing surprises me anymore. We always act differently. We make a decision and then move in another direction.”

According to data from the US Small Business Coalition, around $8 billion was collected in March alone under Section 122 of the Trade Act.

Coalition President Dan Anthony welcomed the court’s ruling. However, he said he was disappointed that the court had not suspended tariff collections during the appeals process.

The 10% tariffs were introduced under Section 122 of the 1974 Trade Act. Bloomberg reported that the provision authorizes presidents to impose tariffs of up to 15% for 150 days when “fundamental international payments problems” arise.

Trump justified the measure by citing a “large and serious” trade deficit, weak income from overseas investments, and deterioration in the balance of payments. Bloomberg noted that, unlike some other legal mechanisms, Section 122 does not require a federal agency investigation, allowing the tariffs to take effect immediately.

The US Supreme Court also ruled in February that tariffs Trump imposed under emergency powers legislation violated federal law. The court further concluded that Trump had exceeded his authority in implementing the tariffs.

Trump, however, said the court had come under foreign influence. “In my opinion, the court was under the influence of foreign interests and a political movement much smaller than people think. It’s a small movement,” he said.

The Supreme Court also struck down numerous Trump tariffs targeting different countries earlier this year. The ruling removed the “reciprocal” tariffs applied to much of the world.

The court also invalidated tariffs on products imported from China, Canada and Mexico. Those measures had been imposed on the grounds of combating fentanyl trafficking.

Among the measures overturned by the Supreme Court were “secondary” tariffs introduced in response to India’s purchases of Russian oil.

Trump complained that the cancellation of the tariffs could force the US government to refund companies as much as $159 billion.