The U.S. Court of International Trade on May 7 struck down President Donald Trump’s 10-percent global tariffs under the Trade Act of 1974.
The tariffs consisted of temporary 10 percent value-based import duties imposed in addition to existing tariffs on most goods entering the United States from all countries.
The federal government had argued that there was a significant balance-of-payments deficit in the form of a $1.2 trillion annual U.S. goods trade deficit, along with a current account deficit of 4 percent of the gross domestic product.
The trade court’s majority held that Trump had gone beyond what the statute allowed. It found that the tariffs were “invalid” and “unauthorized by law.”
In addition to finding the tariffs were illegal, the court issued a permanent injunction preventing the government from collecting the duties from Washington state and two companies that brought suit over the policy.
Although more than 20 states sued, the court found all but Washington lacked standing, or a close enough connection to the controversy, to justify participating in the case. The court ruled the toy company, Basic Fun, and spice importer, Burlap and Barrel, had standing.
Other companies may sue to seek relief from the tariffs, citing the trade court’s new precedent.
Basic Fun CEO Jay Foreman said the ruling was “an important win for American companies that rely on global manufacturing to deliver safe and affordable products.”
“We are encouraged by the court’s recognition that these tariffs exceeded the president’s authority. This ruling brings needed clarity and stability for companies navigating global supply chains.”
Washington Attorney General Nick Brown hailed the ruling.
“This is a win for affordability and the rule of law,” Brown said in a statement.
“It’s American consumers and businesses that have ultimately paid for the president’s illegal tariff campaign. The court’s order will encourage more parties to challenge this illegal executive overreach.”
The Trump administration is expected to appeal and may move to replace the tariffs that were invalidated.
The Epoch Times reached out for comment to the U.S. Department of Justice but received no response by publication time.