The case was originally filed by a coalition of 24 states, but Washington was the only state that did not have its case dismissed.
OLYMPIA, Wash. — A federal court on Thursday ruled against President Donald Trump’s latest attempt to impose a blanket 10% global tariff, saying the 1974 law cited did not justify the tariffs.
The court ruled 2-1 that Trump overstepped the tariff power that Congress had allowed the president under the law. The tariffs are “invalid″ and ”unauthorized by law,” the majority wrote.
The third judge on the panel found the law allows the president more leeway on tariffs.
If the administration appeals Thursday’s decision, as expected, it would first turn to the U.S. Court of Appeals for the Federal Circuit, based in Washington, and then, potentially, the Supreme Court.
At issue are temporary 10% worldwide tariffs the Trump administration imposed after the Supreme Court in February struck down even broader double-digit tariffs the president had imposed last year on almost every country on Earth. The new tariffs, invoked under Section 122 of the Trade Act of 1974, were set to expire July 24.
The ruling directly applies only to the plaintiffs in the case — Washington state and two businesses, spice company Burlap & Barrel and toy company Basic Fun! “It’s not clear” whether other businesses would still have to pay the tariffs, said Jeffrey Schwab, director of litigation at the libertarian Liberty Justice Center, which represented the two companies.
According to the Washington Attorney General’s Office, Section 122 allows the president to impose tariffs when there are “large and serious balance-of-payments deficits.” The office argued no such deficit exists because a trade deficit is not the same thing as a payment deficit.
In a statement to KING 5, Washington Attorney General Nick Brown called the ruling a win for Washington residents.
“This is a win for both affordability and the rule of law,” Brown said. “It’s American consumers and businesses that have ultimately paid for the president’s illegal tariff campaign. The court’s order will encourage more parties to challenge this illegal executive overreach.”
Although the ruling applies only to Washington in the coalition that filed the lawsuit, Brown’s office said it could help support similar challenges from other states.
In a post on X, Washington Gov. Bob Ferguson praised the decision.
“A court just ruled that President Trump’s new global tariffs are also illegal,” Ferguson said. “Americans have paid the price for multiple rounds of illegal tariffs — that’s why I led a coalition of dozens of public and private partners to fight President Trump’s tariffs up to the U.S. Supreme Court.”
The Associated Press contributed to this report.
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