US Court Strikes Down Trump's Global Tariffs
A US trade court has struck down President Trump's 10% global tariffs. The ruling was 2-1 against the tariffs.
The court said the tariffs were not allowed under a 1970s trade law. That law only permits tariffs to fix serious payment imbalances between countries.
The court said a trade deficit is not the same thing. Small businesses challenged the tariffs and won.
The ruling only applies to those businesses. The tariffs had started on 24 February.
They were already due to end in late July. Trump had set up these tariffs as a backup plan.
His earlier import taxes were struck down by the US Supreme Court. This is the second time courts have blocked Trump's global tariff policy.
Klear Note — Tariffs are taxes on goods from other countries. Higher tariffs make foreign products cost more in stores. Trade courts review whether tariffs follow US law.
Key Terms 4
- tariffs Extra taxes added to goods bought from other countries
- trade deficit When a country buys more from abroad than it sells
- Court of International Trade A US court that handles trade and import tax disputes
- injunction A court order that stops something from happening