The Trump administration has appealed a court ruling that blocked its 10% global tariffs imposed under Section 122 of the 1974 Trade Act. The U.S. Court of International Trade (CIT) ruled on Thursday in a 2-1 decision that the tariffs were not justified under the law, which was intended to address balance of payments deficits, not trade deficits. The ruling only applies to three plaintiffs—two small businesses and the state of Washington—but sets a precedent that could impact broader tariff policies. The tariffs, imposed in February as a replacement for duties struck down by the Supreme Court, are set to expire on July 24 unless extended by Congress.
The administration argues the tariffs are lawful and necessary to address trade imbalances. U.S. Trade Representative Jamieson Greer expressed confidence in the appeal, calling the CIT ruling flawed. The White House has also defended the tariffs as a tool to ensure fair trade relations and protect U.S. industries. Meanwhile, legal and trade experts suggest the ruling further constrains the administration's ability to impose tariffs unilaterally. The Supreme Court's February decision struck down earlier tariffs imposed under the International Emergency Economic Powers Act, leading to an estimated $175 billion in refunds for importers. The administration has opened new investigations into trading partners over forced labor and overcapacity concerns, which could lead to additional tariffs.