Donald Trump Faces Another Major Blow As Court Declares 10% Tariff Illegal

Washington: In America, President Donald Trump has suffered another major setback regarding tariff policy. The US Trade Court has declared the 10 percent global tariff imposed by the Trump administration illegal. The court clearly said that the president does not have the authority to impose such comprehensive import duties.

This decision was given by the US Court of International Trade based in New York. The court acknowledged that the Trump administration misused Section 122 of the Trade Act of 1974. This law allows tariffs to be imposed for a limited period of time only in case there is a special economic crisis.

How big a blow did Trump get from the court's decision?

This decision is being considered a big political and legal blow to Trump's economic policies. Earlier, the US Supreme Court had also declared many of Trump's old tariffs illegal. Now for the second consecutive time the courts have raised questions on his business policy.

Although the court has currently limited the relief to only a few companies and Washington State, it is believed that more companies may approach the court in future.

Will America now have to return the money?

According to reports, the US government may now have to give refunds worth billions of dollars. Already thousands of companies are fighting cases regarding tariff withdrawal. It has been said in many reports that there may be a need to return up to 166 billion dollars.

The US Customs Agency has also indicated that the refund process may begin. In some cases, initial payments are said to start from the second week of May.

What can the Trump administration do now?

The Trump administration is preparing to challenge this decision. According to reports, the White House may now plan to impose new tariffs through other legal routes.

Experts say that this matter is not limited to trade policy only, but it is also related to the powers of the president and the limits of the US Constitution. The court has clearly indicated that the president cannot impose tariffs on such a large scale without the approval of Congress.