A federal court dealt another blow to President Donald Trump's trade agenda, ruling against a 10% global tariff the president imposed this year to replace tariffs struck down by the Supreme Court.
A panel of judges for the Court of International Trade ruled 2-1 that Trump wasn't justified in imposing the 10% levy under the 1974 Trade Act.
The Trade Act allows temporary tariffs for up to 150 days to address significant "balance-of-payments deficits." The judges ruled that Trump's tariff order failed to "assert that those required conditions have been satisfied."
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A group of 24 states, along with New York spice importer Burlap & Barrel and Florida toy company Basic Fun!, challenged the tariffs. The court determined that most of the states didn't have legal standing to sue, though, and only blocked the levies for the two companies and Washington state.
“This decision is an important win for American companies that rely on global manufacturing to deliver safe and affordable products. Unlawful tariffs make it harder for businesses like ours to compete and grow,” Basic Fun! CEO Jay Foreman said in a statement.
Trump suggested he wouldn't be deterred by the ruling.
"Nothing surprises me with the courts. Nothing surprises me," Trump said May 7 when asked about the court decision. "So we always do it a different way. We get one ruling and we do it a different way."
The ruling comes after the Supreme Court overturned a pillar of Trump's second term agenda. It declared his use of emergency powers to enact tariffs was unconstitutional. Trump had cited the 1977 International Emergency Economic Powers Act to enact sweeping levies in a bid to reorder trading relationships with countries around the globe.
Tariffs have been central to Trump's economic policy, with the president wielding the levies as a weapon to push for new trade deals. He lashed out at the Supreme Court after its Feb. 20 order against his emergency tariffs, calling the ruling "deeply disappointing."
“I’m ashamed of certain members of the court – absolutely ashamed – for not having the courage to do what’s right for our country,” Trump said.
Trump announced the 10% tariff on the same day the Supreme Court ruled against his other tariff program. It applied to most imports, although Trump exempted certain products such as beef, tomatoes, oranges, pharmaceuticals, passenger vehicles and some critical minerals. Products governed by a trade deal with Canada and Mexico also were excluded.
Contributing: Bart Jansen, Reuters
This article originally appeared on USA TODAY: Court delivers another blow to Trump trade agenda, rules against 10% tariff
