The U.S. Court of International Trade (CIT) has determined that the 10% temporary tariff imposed by former President Donald Trump was unauthorized, striking a blow to his tariff strategy. While the ruling provides relief to two plaintiffs — Burlap & Barrel, a spice importer, and Basic Fun!, a toy maker — it does not extend to other importers, leaving the tariff in place for most. The U.S. government plans to appeal the decision, which could prolong the process of obtaining relief for exporters. The CIT ruled that the authority granted under Section 122 of the Trade Act of 1974 does not cover the trade deficits cited by Trump. This ruling comes as the U.S. government begins refunding importers who paid previously struck-down reciprocal tariffs. Furthermore, ongoing investigations into fair trade practices could lead to new tariffs if violations are found. The ruling is seen as potentially strengthening India's negotiating position in trade discussions with the U.S., particularly regarding the Interim Agreement on trade. However, the agreement remains on hold pending finalization of tariffs.