A federal trade court in the United States has dealt another setback to former US President Donald Trump and his tariff policy, ruling that the administration's temporary 10 per cent global tariffs were not justified under federal law.
In a 2-1 ruling issued on Thursday, a three-judge panel of the US Court of International Trade in New York said Trump had exceeded the powers granted to the president by Congress. The court declared the tariffs "invalid" and "unauthorised by law".
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The ruling comes months after the US Supreme Court struck down a broader tariff regime imposed by the Trump administration on imports from nearly every country.
Relief limited to three plaintiffs
Despite ruling against the tariffs, the court did not block them nationwide. Instead, the order applied only to the three plaintiffs involved in the case; the state of Washington, spice company Burlap & Barrel, and toy maker Basic Fun!
Jeffrey Schwab, director of litigation at the Liberty Justice Center, which represented the two companies, said the broader impact of the ruling remains uncertain.
"It's not clear," whether other businesses would have to continue to pay the tariffs, Schwab said, reported news agency AP.
The dispute centred on temporary 10 per cent worldwide tariffs imposed under Section 122 of the Trade Act of 1974 after the Supreme Court's February ruling against the earlier tariff framework. Those tariffs were scheduled to stay in effect until July 24.
India among countries affected by tariffs
India was also impacted by the Trump-era measures. The US had imposed a 25 per cent tariff along with an additional 25 per cent penalty tariff linked to India's continued imports of Russian crude oil.
An interim India-US trade arrangement later reduced the effective tariff rate to 18 per cent before the Supreme Court struck down the measures.
Another legal hurdle for Trump administration
Last year, Trump invoked the International Emergency Economic Powers Act (IEEPA) of 1977, arguing that America's long-running trade deficit amounted to a national emergency. The administration used that declaration to justify sweeping import tariffs.
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However, on February 28, the Supreme Court ruled that IEEPA did not authorise the president to impose such tariffs.
The Trump administration is expected to appeal Thursday's decision. The case could eventually return to the Supreme Court after going through the US Court of Appeals for the Federal Circuit in Washington.
