A U.S. court has ruled illegal the "10% global tariff" that U.S. President Donald Trump introduced to replace the reciprocal tariff.
The U.S. Court of International Trade (USCIT) ruled on the 7th (local time) that the 10% global tariff the Trump administration imposed on the world cannot be justified under Section 122 of the Trade Act. The bench consisted of three judges.
Earlier, after the U.S. Supreme Court in February found that imposing a reciprocal tariff based on the International Emergency Economic Powers Act (IEEPA) was illegal, President Trump introduced the "10% global tariff" based on Section 122 of the Trade Act to replace it.
With the court striking down not only the reciprocal tariff but also the replacement-type global tariff, the Trump administration's tariff policy is expected to be affected. The New York Times (NYT) assessed that the ruling "dealt another legal blow to the White House's efforts to impose tariffs on foreign goods and wage a trade war without explicit approval from Congress."