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The Court of International Trade has invalidated the tariffs imposed by the president in February.
These tariffs were introduced by Trump under a provision of a 1974 law, which had never been used in such a manner before.
However, the court determined that the law was improperly utilized to enforce the tariffs.
The White House has not yet responded to the decision, which mandates that the US government issue substantial refunds to importers.
The tariffs impacted numerous 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.
The administration is now mired in the bureaucratic headache of refunding more than $180 billion in unlawful taxes.
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.Â
“He still refuses to pay you back.”
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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