US court declares Trump’s 10% tariffs on India, others illegal:Federal court says President exceeded his powers; Congress holds the authority

In a major legal setback for the White House’s aggressive trade policy, a US federal court has ruled against President Donald Trump’s 10% global tariff on most imports imposed after a stinging loss at the Supreme Court. In a split 2-1 ruling, the US Court of International Trade found that Trump had exceeded the authority granted to the President by Congress when he imposed the tariffs under Section 122 of the Trade Act of 1974. The federal court said the duties were ‘invalid’ and ‘unauthorised by law’. The tariffs were introduced in February after the US Supreme Court struck down a broader set of tariffs imposed by the Trump administration last year. Congress holds tariff authority The majority opinion held that Trump had wrongly invoked the decades-old trade law to justify the global tariffs. ALSO READ | 5 options for Trump to bypass SC verdict amid fresh 10% global tariffs Under the US Constitution, Congress has the authority to impose tariffs, although it may delegate limited powers to the President. One judge dissented, arguing that the law provides the President with greater flexibility in setting tariffs. The temporary 10% tariffs were due to remain in effect until July 24. Businesses challenged tariffs The case was brought by the state of Washington and two companies, spice maker Burlap Barrel and toy company Basic Fun!. Jeffrey Schwab, director of litigation at the Liberty Justice Center, which represented the two companies, said it remained unclear whether businesses outside the lawsuit would still be required to pay the tariffs. “We fought back today, and we won,” Basic Fun! CEO Jay Foreman told reporters after the ruling. Appeal expected The Trump administration is expected to appeal the decision. The case would first go to the US Court of Appeals for the Federal Circuit in Washington and could eventually return to the Supreme Court. The ruling follows another significant defeat for the administration earlier this year, when the Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) did not authorise the broader tariffs Trump imposed in 2025. It is important to note that President Trump had declared the longstanding US trade deficit a national emergency under IEEPA to justify imposing sweeping import duties on nearly every country. White House exploring new tariff measures Despite the court rulings, the Trump administration is widely expected to pursue alternative routes to impose fresh tariffs. The Office of the US Trade Representative is currently investigating whether 16 trading partners, including China, the European Union, and Japan, are overproducing goods and harming US manufacturers through artificially low prices. Another investigation is examining whether 60 economies, ranging from Nigeria to Norway and accounting for 99% of US imports, are doing enough to prevent the trade of goods linked to forced labour. The findings from both investigations could pave the way for additional tariffs in the coming months.