A federal court ruled Thursday that President Trump’s global 10% tariffs are unlawful, concluding the administration misread the law used to justify the sweeping tariffs.

▪️ In a 2-1 decision, judges on the Court of International Trade said the administration incorrectly interpreted the phrase “balance-of-payments deficits” under the Trade Act of 1974.

▪️ The ruling marks the second time Trump’s tariff regime has been found illegal, after the Supreme Court earlier this year affirmed a previous Court of International Trade decision blocking Trump’s first round of tariffs.

▪️ The court granted an injunction to two small businesses and the state of Washington, while dismissing claims brought by a larger coalition of states over lack of standing. The immediate impact of the ruling remains unclear.