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US trade court rules against Trump’s 10% global tariffs

US trade court rules against Trump’s 10% global tariffs

Summary

A U.S. trade court ruled against President Donald Trump’s 10% global tariffs, saying the law he used did not justify broad tariffs on imports. The court’s decision supported small businesses that challenged the tariffs, which started in February 2024.

Key Facts

  • The U.S. Court of International Trade ruled 2-1 against Trump's global 10% tariffs.
  • The tariffs were imposed starting February 24, 2024.
  • Small businesses argued the tariffs tried to bypass a previous Supreme Court ruling that blocked Trump’s 2025 tariffs.
  • Trump used Section 122 of the Trade Act of 1974 to justify these tariffs, which allows short-term duties to fix serious trade issues.
  • The court said the law was not meant for the type of trade deficits cited by Trump.
  • On the same day as the ruling, Trump gave the European Union a July 4 deadline to meet trade deal promises or face higher tariffs on EU goods, including cars.
  • Trump increased tariffs on EU vehicles from 15% to 25% because the EU delayed passing the trade deal through its parliament.
  • Trump and the EU’s Ursula von der Leyen agreed that Iran should never have a nuclear weapon during a recent phone call.
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