US Court Rules Trump's Global Tariffs Unlawful

Plaintiffs—including small businesses and the state of Washington—argued the measures attempted to circumvent a 2025 Supreme Court decision that struck down Trump's earlier tariffs for exceeding presidential authority. The new ruling, passed by a 2-1 vote, stated the 1974 law didn't apply to the trade deficits cited by Trump.

Immediate Consequences

Customs and Border Protection (CBP) is barred from collecting duties from plaintiffs, with refunds ordered for payments already made. Sector-specific tariffs on steel, aluminum, and automobiles remain unaffected.

Trump had threatened to raise the rate to 15%—the maximum allowed under the 1974 law—if the EU didn't implement a trade agreement by July 4. "If the EU does not fulfill its part of the agreement, tariffs will 'leider sofort auf ein viel höheres Niveau steigen'" (unfortunately immediately rise to a much higher level), he warned after what both sides called a "very good" call with EU Commission President Ursula von der Leyen.