In a 2–1 decision, a three-judge panel of the U.S. Court of International Trade on Thursday found that Trump exceeded his legal authority when he imposed across-the-board global tariffs in February.
The tariffs were introduced by Trump after the Supreme Court in February struck down his use of emergency powers under the International Emergency Economic Powers Act (IEEPA), which had served as a cornerstone of his global tariff agenda, and used to impose several reciprocal tariffs on multiple countries.
The small businesses that brought the case argued the administration was attempting to bypass the Supreme Court ruling through a new legal mechanism.
The trade court ruled that the type of trade deficits cited by Trump did not justify such broad tariff powers and emphasized that Section 122 of the Trade Act was intended to give tariff-setting authority to Congress, not the Executive branch.
The ruling applies only to the state of Washington and the two companies involved in the lawsuit, with the judges declining to issue a nationwide injunction. However, the plaintiffs are set to receive refunds for tariffs under Section 122, with interest.
Thursday’s decision marks another setback for Trump’s economic agenda and could open the door to further legal challenges.
“We are encouraged by the court’s recognition that these tariffs exceeded the President’s authority. This ruling brings needed clarity and stability for companies navigating global supply chains,” Foreman added.
Meanwhile, Trump announced Thursday night a new deadline for finalizing a trade deal with the European Union.
Trump added that despite a “great call” with European Commission President Ursula von der Leyen, tariffs “would immediately jump to much higher levels” if the agreement is not completed by July 4.
President Donald Trump and President of the European Commission Ursula von der Leyen shake hands as they announce a U.S.-E.U. trade deal after a meeting at Trump Turnberry golf club on July 27, 2025 in Turnberry, Scotland. —Andrew Harnik––Getty ImagesHowever, E.U. negotiators have yet to pass the legislation required to implement the agreement, a delay that has frustrated Trump. Last week, he threatened the bloc with a new 25% tariff on automobiles, accusing it of failing to comply with the deal.
“We remain fully committed, on both sides, to its implementation. Good progress is being made towards tariff reduction by early July,” she said.
Relations between Trump and several European leaders have grown increasingly strained amid the conflict with Iran, with the President repeatedly criticizing allies for refusing to support U.S. military operations alongside Israel.
Trump has also floated the possibility of withdrawing from NATO and threatened to pull troops from Germany, Italy, and Spain.
Hence then, the article about fresh setback for trump s tariffs as he threatens europe with much higher levy was published today ( ) and is available on Time ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Fresh Setback for Trump's Tariffs as He Threatens Europe With 'Much Higher' Levy )
Also on site :