The US Court of International Trade ruled on Thursday that the 10% temporary tariffs imposed by Donald Trump in February are illegal.
The court found that the government could not rely on a 1974 trade balancing law to impose the broad surtaxes. The decision was made by a two-to-one majority of judges.
The three plaintiff companies are now exempt from the duties. The US government must repay the amounts collected over the past two months, plus interest.
The ruling, which can be appealed, currently applies only to the three companies involved. It sets a legal precedent that could allow other firms to challenge the measures.
This marks another setback for Donald Trump, who has made tariffs central to his policy since returning to the White House in early 2025.
