Trump tariffs stumble as court blocks global 10% levy, EU faces higher threat

President Donald Trump announced Thursday that the U.S. Court of International Trade has invalidated his recent Trump tariffs order, ruling the administration overstepped authority on the ↓ 10% global levy.

Trump tariffs face court rebuke

The three‑judge panel voted 2‑1, finding Section 122 of the Trade Act cannot be used as a blanket tool for worldwide duties. Small businesses from Washington, the plaintiffs, argued the move circumvented the Supreme Court’s earlier injunction on emergency powers.

“We were surprised,” Trump said, “but nothing shocks me about the courts.”

The decision applies only to the two firms in the suit; a nationwide injunction was denied, but the court ordered refunds with interest, amounting to ↑ $2 billion in repayments.

EU confronts higher levy threat

Simultaneously, Trump warned the European Union that if the Turnberry trade pact is not ratified by July 4, tariffs could jump to “much higher” levels, including a proposed ↓ 25% duty on European autos.

The 2025 agreement capped most EU imports at 15% and promised duty‑free access for U.S. industrial goods, yet EU legislators have stalled implementation. European Commission President Ursula von der Leyen told Reuters that progress remains “on track” for an early‑July resolution.

Industry leaders such as Basic Fun CEO Jay Foreman hailed the court ruling as “a win for companies that rely on global supply chains,” while warning that continued uncertainty could erode confidence.

Analysts note that the legal setback may embolden further challenges to the administration’s trade agenda, and the looming EU tariff threat adds a geopolitical flashpoint to an already tense transatlantic relationship.

Reported by: Eleanor Cross

Chief Washington Correspondent