Court strikes down Donald Trump's 10 per cent tariffs on everyone

Court strikes down Donald Trump's 10 per cent tariffs on everyone

Donald Trump's sweeping 10 per cent tariff on nearly all imports globally has been found to be illegal by a US court.

The Court of International Trade struck down the taxes that the president applied in February.

Trump brought in those tariffs using a provision in a 1974 law that had never before been used for that purpose.

READ MORE: Americans asked if they could beat Donald Trump in a fightDonald Trump's tariffs have been struck down.

But the court found that the law was wrongly invoked to apply the tariffs.

The White House is yet to comment on the ruling, which would require the US government to make another massive refund to importers.

The tariffs applied to most countries, including Australia.

The administration argued that when the 1974 law spoke of "balance of payments deficits", it was the same as a "trade deficit".

But the court was unimpressed.

"It is clear that Congress was aware of the differences in the words it chose," the judges wrote.

Trump brought in the 10 per cent blanket tariff in February after the Supreme Court struck down his other tariffs.

The administration is now mired in the bureaucratic headache of refunding more than $180 billion in unlawful taxes.

"I hate to pay people back," a visibly angry Trump said when speaking about that decision earlier this week.

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The administration will now also have to also refund all the tariff money taken in the past three months.

Trump can still appeal today's decision to the Supreme Court.

But in issuing their ruling today, the judges specifically cited February's Supreme Court decision.

Democrats are now using the refund delays as a cudgel against Trump.

"It's been 75 days since the Supreme Court ruled the president's tariff-taxes illegal," Senator John Hickenlooper said. 

"He still refuses to pay you back."

Australia's biggest export to the US is still under an 100 per cent tariff applied under a different law.

Australia exports $1.6 billion in pharmaceutical products.

READ MORE: What do Australians buy from the US, and what do we sell to them?Australia exports more than a billion dollars worth of vaccines to the US each year.

The bulk of the sector's value comes from one company, CSL, a major producer of blood plasma products based in Melbourne.

"This is the wrong decision by a partner of a successful free trade agreement that has endured for more than 20 years," Health Minister Mark Butler said when it was introduced.

"We want the US administration to think again and to reverse this decision."

The minister reassured that the tariffs will not have an impact on pharmaceutical prices to customers here in Australia.

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