Another setback for Donald Trump: a US court ruled on Thursday that the temporary 10% tariffs imposed in February by the American president to replace the generalized surtaxes that had been invalidated by the Supreme Court were illegal.
According to the Court of International Trade (CIT), the US government cannot rely on a 1974 law aimed at balancing trade between the United States and its trading partners to impose indiscriminate tariffs.
In a statement, the Center for Freedom and Justice (CFJ), which had filed the lawsuit on behalf of several companies, welcomed the decision. According to Jeffrey Schwab, a lead attorney for the CFJ, the 1974 law was passed to address “a specific historical crisis during which gold and currency reserves were depleted.”
“The United States has a trade deficit, not a current account deficit or international payment problems. The president cannot impose these tariffs,” he added in a statement.
Another blow for Trump
This is another blow for the American president who has made customs duties a centerpiece of his policy since returning to the White House in early 2025 and has threatened to impose new ones. According to Thursday’s ruling, made by two judges against one, the 10% surtax is not in line with the law. Therefore, the three companies that had taken the case to court should no longer be subject to such an additional charge.
The court also orders the US government to reimburse them, with interest, for the unfairly collected duties over the past two months. Although the judgment, subject to appeal, is currently limited to these three plaintiffs, it sets a legal precedent for other companies to also challenge the surtaxes.
In late February, the US Supreme Court had struck down a large portion of the tariffs sought by the American president, finding that he had made an unconstitutional reading of a law to justify them. Donald Trump was also opposed to this new 10% surtax. However, the 1974 law only applies in cases where a marked imbalance in the current account is demonstrated.
Americans are paying the price
The current account balance includes all financial movements between two countries, including trade exchanges as well as financial flows or cross-border investments. However, this 1974 text only provides for a maximum duration of six months for tariffs, which can only be extended once Congress has approved.
In addition to these companies, around twenty US states, including New York, California, and Pennsylvania, had announced in early March that they were filing a lawsuit against these temporary 10% tariffs. They also accuse Donald Trump of not following the conditions set out in the 1974 law, making the implementation illegal in their view.
“Trump continues to implement illegal and irresponsible policies in the hope that it will hold, but it is the Americans who pay the price daily,” denounced California Governor Gavin Newsom in a statement.
