The Court of International Trade on Thursday blocked President Trump’s second major global tariff plan, months after the Supreme Court ruled 6-3 that he could not unilaterally impose broad tariffs under the International Economic Emergency Powers Act.
Following that ruling in February, the Trump administration imposed a universal 10% tariff under Section 122 of the Trade Act of 1974, arguing the move was necessary to address international payment and trade imbalances.
A group of small businesses challenged the tariffs, leading a three-judge trade court panel to rule 2-1 against the administration. The court said Section 122 requires “fundamental international payments problems” or “large and serious United States balance-of-payments deficits,” conditions the judges said were not properly established in Trump’s proclamation.
“The President’s Proclamation fails to assert that those required conditions have been satisfied,” the opinion stated.
The administration is expected to appeal to the U.S. Court of Appeals for the Federal Circuit, with the case likely headed back to the Supreme Court.
