U.S. Court Issues Unfavorable Ruling for Trump on 10% Global Tariff

In a significant blow to former President Donald Trump's protectionist trade agenda, the U.S. International Trade Court (CIT) has delivered an unfavorable ruling regarding his 10% global tariff. As reported by Reuters and detailed by Tuổi Trẻ, the court determined that the tariff, implemented under the Trade Act of 1974 to address the nation's balance of payments deficit, lacked the necessary legal foundation. This decision, while initially applying only to two specific businesses and Washington state, opens the door for broader legal challenges against the administration's trade policies.

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The U.S. International Trade Court (CIT) dealt another heavy blow to President Donald Trump's tariff strategy, ruling that his latest 10% global tariff lacked a basis under the Trade Act of 1974.

This latest ruling follows a February decision by the U.S. Supreme Court, which had previously rejected Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs. Undeterred, the former president quickly pivoted, announcing the 10% global tariff under a different legislative authority. The CIT's decision now casts further doubt on the legality and sustainability of these measures, which were slated to expire at the end of July unless extended by Congress.

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The ruling currently blocks the application of the aforementioned tariff for two businesses and Washington state, but could pave the way for similar rulings in the future.

The Trump administration had been pursuing longer-term strategies, including new investigations into trade partners over issues like forced labor and overcapacity, which could lead to further tariffs. However, this court ruling complicates those efforts and signals a potential for prolonged legal battles over billions of dollars in potential refunds for importers who paid the contested duties.

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After the U.S. Supreme Court on February 20 rejected the 'emergency' tariffs applied under the International Emergency Economic Powers Act (IEEPA) of 1977 by President Trump, he quickly announced a temporary 10% global tariff.

Predictably, former President Trump reacted with characteristic defiance, dismissing the CIT's ruling and labeling the judges as "far-left." He asserted that his administration would find alternative ways to implement its trade objectives. Tuổi Trẻ will continue to monitor the legal ramifications of this decision and the administration's response, highlighting the ongoing tension between the former president's trade policies and the established legal framework.

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The Trump administration can appeal the court's ruling.