Another US court has dealt a blow to President Donald Trump, ruling against the 10 percent global tariffs he imposed after the Supreme Court struck down earlier tariffs, WION reported.
The US Court of International Trade has blocked the tariffs against two companies and Washington state. The ruling could pave the way for broader litigation in the future. The court found that the latest tariffs were not justified under a 1970s law cited by the Trump administration when they were implemented.
Donald Trump imposed the temporary 10 percent tariffs in February, shortly after the Supreme Court struck down many of his previous global tariffs. His administration argues that the measure is necessary to address balance of payments deficits under Section 122 of the Trade Act of 1974. The tariffs will remain in effect until the end of July unless Congress approves an extension. In the meantime, the administration is exploring more permanent ways to revive Trump’s trade strategy.
As part of that effort, U.S. authorities have launched new investigations into dozens of trading partners over concerns about forced labor and industrial overcapacity, actions that could ultimately lead to additional tariffs or other trade measures. The Court of International Trade ordered the defendants to comply with the ruling within five days and ordered importers involved in the case to receive refunds. The Trump administration is expected to appeal the ruling.
"Section 122 was enacted in response to a specific historical crisis that depleted the United States' foreign exchange and gold reserves," said Jeffrey Schwab, senior counsel at the Liberty Justice Center, after the ruling. "The United States has a trade deficit, not a balance of payments deficit, and it has no international payments problem," he said.
Trump's sector-specific tariffs on products such as steel, aluminum and automobiles remain unaffected by the ruling and its related legal challenges.
However, the ruling marks another setback for Trump's broader tariff program. After the Supreme Court previously dealt a major blow to Trump's trade policies, businesses across the United States rushed to seek refunds.
U.S. Customs and Border Protection estimated in March that more than 330,000 importers could be eligible for refunds following the Supreme Court's previous ruling. The tariffs, which were previously lifted under the International Emergency Economic Powers Act, had collected about $166 billion in duties and deposits.