According to the ruling of the Commercial Court, which is based in New York, the Executive exceeded the limits of the regulations by generally applying a tariff to products from practically all countries.
However, the future of the litigation remains open, given that the Government had already planned for the global tariff to function as a temporary measure intended to buy time while other legal bases for imposing more lasting tariffs were explored.
The 10% tariff applies from February 24 under section 122 of the Trade Act of 1974with a validity of 150 days, so it expires on July 23. After this it can only be extended by Congress.
According to The New York Times, the Trump Administration is expected to appeal the ruling, which could prolong the conflict. However, a definitive defeat would force the Executive to return the revenue collected under these tariffs, a figure that is around US$166 billion, according to estimates, cited by the EFE agency.
Following the Supreme Court’s previous overturning of tariff measures, the Administration turned to a little-used provision of the 1974 Trade Act known as section 122.
However, the Commercial Court emphasizes that this provision only allows the temporary imposition of limited tariffs, in specific circumstances linked to serious imbalances in the balance of payments or situations of instability in the international financial system.
The ruling also recalls that this rule allows levies of up to 15% for a maximum of 150 days, after which its continuity depends on authorization from Congress.