The US Court of International Trade ruled on Thursday that President Donald Trump's 10% across-the-board global tariffs, effective February 24, are unlawful. In a 2-1 decision, the court found that the tariffs were not justified under Section 122 of the Trade Act of 1974, which allows temporary duties to address serious balance-of-payments deficits or prevent dollar depreciation.

The ruling came in response to a lawsuit filed by small businesses, who argued that the tariffs were an attempt to circumvent a landmark Supreme Court decision that struck down Trump's 2025 tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The plaintiffs contended that the administration improperly used the 1974 law to impose broad trade penalties.

Judge Gregory Kress dissented, stating that it was premature to grant victory to the plaintiffs. The majority, however, held that the trade deficits cited by Trump in his February order did not meet the legal criteria for invoking Section 122, which is designed for emergency economic situations.

This decision deals a significant blow to the Trump regime's trade agenda, potentially limiting its ability to impose unilateral tariffs. Legal experts suggest the ruling could create further uncertainty in global trade relations and may be appealed to the Supreme Court. The case underscores ongoing legal challenges to the administration's protectionist policies.

Source: www.aljazeera.com