A federal court on Thursday ruled that President Donald Trump unlawfully used Section 122 of the Trade Act of 1974 to impose a 10 percent global tariff — a backup plan the president implemented after the Supreme Court struck down his more sweeping worldwide tariffs earlier this year.
A divided three-judge panel on the U.S. Court of International Trade concluded that Trump’s Plan B was similarly unlawful. And the two judges in the majority barred the administration from collecting the duties from Washington state and two companies that sued over the policy.
The court did not issue nationwide relief for the hundreds of thousands of importers that have paid or continue to pay the tariffs, but it has set a precedent that other companies could point to in any legal effort to pursue similar relief.
While 24 Democratic-led states, spice importer Burlap & Barrel and toy company Basic Fun! challenged the policy, the panel found that only Washington state and the two companies had standing, leaving the injunction limited to those plaintiffs.
