A U.S. trade court once again ruled against tariffs implemented by the Trump administration, this time striking down a 10% blanket tariff on all imports that was first imposed by the White House in February.
The 10% tariff had initially been put into place by President Donald Trump in response to the U.S. Supreme Court's decision to strike down separate levies that had been illegally enacted under the International Emergency Economic Powers Act (IEEPA). At the time, Trump had justified the new levies under Section 122 — a rarely-used provision in the Trade Act of 1974 — which allows the executive branch to implement tariffs of up to 15% for 150 days without congressional approval, to respond to "large and serious balance-of-payment deficits."
In a decision issued on May 7, two out of three judges with the U.S. Court of International Trade (USCIT) ruled that Trump had failed to meet the requirements of Section 122, noting that the president's proclamation failed to identify any deficits as defined by the Trade Act, The New York Times reports. Moving forward, the USCIT's ruling only blocks Trump's Section 122 tariffs for small businesses and plaintiffs that sued the administration, while the levies can remain in place for all other importers through July, pending any potential appeal.
Speaking to reporters, Trump was critical of the USCIT's ruling, and vowed to "do it another way," referring to how the administration has consistently sought other legal avenues for enacting tariffs following court decisions. The White House is also expected to appeal the ruling in the days ahead.
