A US trade court has struck down the 10% global import tariff imposed by President Donald Trump.
The decision was issued in response to a petition filed by small business groups that challenged the tariffs introduced in February.
In a 2–1 majority ruling, the court stated that under the Trade Act of 1974, there is no legal justification for imposing such broad global tariffs. The judgment noted that the law invoked by the administration does not permit such extensive tariffs based on the current situation, particularly trade deficits.
The Trump administration had argued that the United States was facing a trade deficit of approximately $1.2 trillion along with increasing economic pressure, making the tariffs necessary to protect the national economy. However, the court rejected this argument, stating that while economic pressure exists, legal boundaries cannot be exceeded in addressing it.
The ruling clearly stated that the President had overstepped constitutional and legal authority, and such decisions cannot be made without approval from Congress. It also added that the global tariffs were not only beyond the scope of US law but also negatively impacted the international trade system.
Following the verdict, plaintiffs including the head of a well-known toy company, Jay Foreman, welcomed the decision. He said the unlawful tariffs had severely affected business operations, global supply chains, and consumers. He added that the ruling would bring stability, confidence, and clearer economic direction for businesses.
Analysts believe the decision could mark an important turning point in US trade policy.