U.S. Trade Court Rules Against Trump's 10% Tariff

The U.S. Court of International Trade (CIT) ruled on Thursday that President Donald Trump's 10% temporary tariff imposed on all U.S. trade partners, including India, was unauthorized by law. The court provided relief to only the plaintiffs, two small companies in the U.S. and Washington State, with the tariff remaining on all other importers.

The CIT's 2-1 decision stated that Section 122 of the Trade Act of 1974 did not give the President the authority to address trade deficits and current account deficits cited by Trump when he levied the 10% tariff.

The U.S. government is expected to appeal the judgment at the federal level, which could extend the process by several months. The ruling comes days after the U.S. government started paying refunds to U.S. importers who had paid the reciprocal tariffs that were eventually struck down by the Supreme Court.

The immediate outlook is that the U.S. government will appeal the decision, and the court will likely hear the appeal in the coming months. The U.S. government has also launched investigations under Section 301 of the Trade Act of 1974 regarding fair trade practice and labor rights violations by several trade partners, including India, with conclusions expected in July.