US Trade Court Blocks Trump’s 10% Global Tariffs as President Threatens 25% EU Auto Duties

*TL;DR The US Court of International Trade struck down President Trump’s 10% worldwide tariffs, and the president announced a plan to lift EU vehicle duties to 25% by July 4.

Context On February 24, the Trump administration imposed a blanket 10% tariff on imports from every country, citing a 1974 Trade Act provision meant to address severe balance‑of‑payments problems. Small businesses challenged the measure, arguing it circumvented a Supreme Court ruling that had invalidated earlier tariffs imposed under emergency powers.

Key Facts - The Court of International Trade ruled 2‑1 that the 1974 law does not justify the across‑the‑board tariffs, finding the administration’s justification of a looming dollar depreciation insufficient. One judge warned the decision was premature for the plaintiffs. - In a separate move, Trump announced on Truth Social that he will raise tariffs on European Union vehicles from the existing 15% to 25% unless the EU meets its commitments by July 4. The deadline was set during a call with European Commission President Ursula von der Leyen, during which the leaders also agreed that Iran must never acquire a nuclear weapon. - The EU’s obligations stem from a trade deal struck in Scotland last July, which required the bloc to eliminate tariffs on US industrial goods and grant duty‑free quotas for certain US farm and seafood products. Implementation has stalled in the European Parliament.

What It Means The court’s decision removes a major tool from Trump’s trade arsenal, limiting his ability to impose broad tariffs without clear statutory backing. The threatened 25% auto duty represents a targeted escalation aimed at pressuring the EU to fulfill the Scottish‑July agreement. If the deadline passes unmet, US importers of European cars could face a cost increase of up to 10 percentage points, potentially raising retail prices and reshaping supply chains.

Watch for the EU’s response before the July 4 deadline and any legal challenges to the proposed auto tariffs, which could set a new precedent for sector‑specific trade disputes.