A panel of judges at the United States Court of International Trade ruled Thursday that Donald Trump’s 10% global tariffs imposed under Section 122 of the Trade Act of 1974 were “unauthorized by law.”
In a 2-1 ruling, the court found the administration lacked sufficient legal justification to impose the tariffs under Section 122, which allows temporary import surcharges under certain international payments conditions.
The decision applies only to the plaintiffs in the case, including spice importer Burlap and Barrel, toy company Basic Fun and the State of Washington. The ruling directs the administration to stop collecting the tariffs from those parties and refund prior payments.
The court said the presidential proclamation imposing the tariffs did not identify “large and serious United States balance-of-payments deficits” as Congress intended when it enacted Section 122 in 1974.
The opinion said the administration relied on trade deficits, current account deficits and investment position data to support the tariffs. The judges also noted that Congress holds constitutional authority over tariffs and taxation, while presidential tariff powers must remain within limits delegated by …
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