(SeaPRwire) – A U.S. trade court has issued another setback to President Donald Trump’s proposal for global tariffs set at 10%, coinciding with his threat of imposing significantly higher duties on the European Union.
In a 2–1 ruling, a three-judge panel of the U.S. Court of International Trade found on Thursday that Trump overstepped his legal authority when he implemented sweeping global tariffs in February.
“Well, we were surprised,” Trump said when questioned about the court’s decision. “We had one very favorable vote, but two radical left judges who voted against it. Nothing surprises me anymore when it comes to the courts.”
The tariffs were enacted by Trump following the Supreme Court’s rejection in February of his use of emergency powers under the International Emergency Economic Powers Act (IEEPA), which had been central to his strategy for imposing reciprocal tariffs on various countries.
“The Supreme Court’s judgment regarding tariffs is deeply disappointing! I am disheartened by certain members of the court for lacking the courage to do what is right for our nation,” Trump stated at the time.
The small businesses involved in the lawsuit argued that the administration was attempting to circumvent the Supreme Court’s decision through an alternative legal approach.
In February, immediately after the Supreme Court’s ruling, Trump announced he would issue “an order to impose a 10% global tariff, under Section 122, in addition to our standard tariffs already in place.”
The trade court determined that the type of trade deficits cited by Trump did not justify such extensive tariff authority and emphasized that Section 122 of the Trade Act was designed to grant tariff-setting power to Congress, not the Executive branch.
“Section 122 is a limited, temporary mechanism intended to address specific balance-of-payments emergencies—not a blank check allowing the executive branch to impose worldwide trade restrictions due to ordinary trade deficits or to evade prior judicial rulings,” said the Liberty Justice Center, the law firm representing the plaintiffs.
The ruling applies exclusively to the state of Washington and the two companies involved in the lawsuit, with the judges declining to issue a nationwide injunction. Nevertheless, the plaintiffs will be entitled to refunds for tariffs paid under Section 122, along with interest.
“Nothing surprises me. So, we always find another way; we get one ruling, but then proceed differently,” Trump remarked in response to the court’s decision.
Thursday’s decision marks another obstacle for Trump’s economic agenda and may pave the way for further legal challenges.
“This ruling represents a crucial victory for American enterprises that depend on international manufacturing to deliver secure and affordable products. Unauthorized tariffs hinder businesses like ours from competing effectively and expanding,” said Jay Foreman, CEO of Basic Fun!
“We are encouraged by the court’s acknowledgment that these tariffs went beyond the President’s authorized powers. This decision provides essential clarity and stability for firms operating within global supply chains,” Foreman added.
The Administration has also commenced processing refunds related to Trump’s initial IEEPA tariffs, with corporations expected to receive billions of dollars in repayments.
Meanwhile, Trump announced on Thursday night a new deadline for finalizing a trade agreement with the European Union.
“I have been patiently waiting for the EU to honor their part of the historic trade deal we agreed upon in Turnberry, Scotland—the largest trade deal ever negotiated!” he said.
Trump further stated that despite having a “productive conversation” with European Commission President Ursula von der Leyen, tariffs “will immediately increase to much higher levels” if the agreement is not concluded by July 4.
The agreement, reached in July of last year, established a maximum tariff rate of 15% on most European goods. In exchange, the EU committed to eliminating duties on U.S. industrial products, including automobiles.
However, EU negotiators have yet to pass the necessary legislation to enact the agreement, a delay that has provoked Trump. Last week, he warned the bloc of introducing a new 25% tariff on automobiles, accusing it of failing to comply with the terms of the deal.
EU officials failed once again this week to present a finalized agreement, although von der Leyen maintained an optimistic tone following her discussion with Trump.
“We remain fully dedicated, on both sides, to implementing the agreement. Substantial progress is being made toward reducing tariffs by early July,” she said.
Trump noted that he and von der Leyen also discussed the ongoing conflict with Iran, emphasizing that both parties are “completely aligned” in their belief that Iran must never possess a nuclear weapon.
Tensions between Trump and several European leaders have intensified amid the conflict with Iran, as the President has repeatedly criticized allies for refusing to support U.S. military operations alongside Israel.
Trump has also considered withdrawing from NATO and threatened to remove troops stationed in Germany, Italy, and Spain.
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