US court deals fresh blow to Trump's 10% tariff policy

A US trade court has dealt a fresh blow to President Donald Trump's tariff strategy, ruling that his new 10% global tariffs were unlawful.

Trump imposed the temporary 10% duty in February under a national emergency law, shortly after the Supreme Court struck down even broader double-digit tariffs the president had levied in 2025 on most nations around the world.

In a 2-1 ruling, the panel of judges at the US Court of International Trade found the administration lacked the justification to enact tariffs under Section 122 of the Trade Act of 1974.

Ruling's immediate impact limited

A majority of two judges on the three-judge panel wrote in the ruling that the tariffs were "invalid″ and "unauthorized by law."

The third judge found that the law allows the president more leeway on tariffs, adding that it was premature to grant victory to the plaintiffs.

Thursday's court decision directly blocked the levies from being imposed on the state of Washington and on just two private importers: a spice company and a toy company. 

The New York-based court left the temporary tariffs, which are expected to expire in July, in place for all other importers as it declined to issue a universal injunction.

The request to block the tariffs came from a group of 24 states, mostly led by Democrats. The court said those states did not have standing to seek that relief.

"Private plaintiffs make no specific arguments for a universal injunction. Costs to one plaintiff is not an appropriate basis for the imposition of a universal injunction. Accordingly, the court declines to enter a universal injunction," the court ruled.

What next for Trump tariffs?

The Trump administration can appeal the court's decision, turning first to the US Court of Appeals for the Federal Circuit in Washington and then, potentially, to the Supreme Court once again. 

Since the Supreme Court ruled in February that Trump's previous set of sweeping global tariffs was unconstitutional, businesses have scrambled to seek refunds. 

According to March figures from US Customs and Border Protection, more than 330,000 importers could be eligible for refunds following the high court's decision.

The tariffs that were earlier struck down collected an estimated $166 billion (around €142 billion) in duties and estimated deposits. 

How did Trump respond to the tariff setback?

When asked about the court ruling, Trump criticized the decision, blaming it on "two radical left judges."

"So, nothing surprises me with the courts. Nothing surprises me," he told the media in Washington. "We get one ruling, and we do it a different way."

Edited by: Roshni Majumdar