A United States trade court has ruled against President Donald Trump's universal 10 per cent tariff rate, dealing another blow to his signature economic policy.
A panel of judges at the US Court of International Trade found two-to-one that the Trump administration lacks a justification to impose the tariffs under a 1970s law.
Mr Trump ordered the tariffs on most imports to the US in February, after the Supreme Court deemed his wide swathe of "Liberation Day" tariffs unlawful.
A group of small businesses challenged the new rate, which was enacted for 150 days, or through to July.
Today's decision only applies to the plaintiffs in the case, so the tariffs can remain in place for other importers until the end of the 150-day period.
The Trump administration announced its sweeping "Liberation Day" tariffs on imports last year. (Reuters: Carlos Barria)
The trade court declined to issue an injunction that blocked the tariffs for all importers, rejecting a request from a group of 24 mostly Democrat-led states, ruling that most of the states that sued were not importers who had paid or could have paid the tariffs.
The tariffs were "invalid" and "unauthorised by law", the majority of the trade court wrote, while the third judge on the panel found the law allowed the president more leeway on tariffs.
The White House has not yet commented on the ruling and could appeal.
The new tariffs, invoked under US trade laws, were set to expire on July 24.
Setback for tariff agenda
The ruling is another legal setback for the Trump administration and its agenda to establish a wall of import taxes.
The Supreme Court in February struck down the Trump administration's even broader double-digit tariffs on almost every country, after the US president announced them in April 2025.
It ruled six-to-three to uphold a lower court's previous finding that Mr Trump had illegally imposed tariffs under a law meant for national emergencies.
Bombshell ruling by US Supreme Court kills tariffs The US president says he is "absolutely ashamed" of members of the court who struck down his global tariffs after finding he lacked the authority to implement them.
The decision was regarded as the most significant and consequential court strike-down of a Trump policy since his return to the presidency.
Mr Trump angered many of the United States's trading partners when he announced so-called "reciprocal tariffs" on imports from more than 180 countries.
Those tariffs ranged from 10 per cent, which was the minimum "baseline" amount, up to 49 per cent for Cambodia and 48 per cent for Laos.
Australian exports were subject to the 10 per cent baseline tariff. At the time, Prime Minister Anthony Albanese described the tariffs as "entirely unjustified" and "not a friendly act".
ABC/wires