The Trump administration on Friday appealed a court ruling that said the 10% worldwide tariffs imposed in February were not justified under a 1970s trade law.
The U.S. Court of International Trade ruled in a 2-1 decision Thursday that Section 122 of the Trade Act of 1974 is not intended to address trade deficits that occur when the United States imports more goods than it exports. But the court only blocked the tariffs on two small businesses and three importers in Washington state who brought the lawsuit.
The ruling, which applies to a series of penalties set to expire in about two months, represents another setback for President Trump’s global tariff ambitions and comes a week before he is scheduled to discuss trade tensions with Chinese President Xi Jinping in Beijing.
It comes three months after the Supreme Court struck down President Donald Trump’s sweeping global tariffs imposed under the National Emergencies Act, setting the stage for another lengthy legal battle over billions of dollars worth of tariff refunds.
President Trump told reporters Thursday that he blamed the U.S. Commerce Court’s decision on “two radical left-wing judges.”
In February, the Supreme Court ruled that President Trump did not have the authority to impose previous tariffs under the International Emergency Economic Powers Act, and Trump now has to impose a 10% compensatory tariff on all imports under Section 122 of the Trade Act.
The new tariffs were a temporary replacement and were scheduled to expire on July 24 unless extended by Congress.
