The US trade court on Thursday ruled against Donald Trump’s latest 10% global tariffs, finding across-the-board tariffs were not justified under a 1970s trade law.

The US court of international trade ruled in favor of small businesses that challenged the tariffs, which took effect on 24 February. The ruling was 2-1, with one judge saying it was premature to grant victory to the small business plaintiffs.

The small businesses had argued the new tariffs were an attempt to sidestep a landmark US supreme court decision that struck down the Republican president’s 2025 tariffs imposed under the International Emergency Economic Powers Act.

In his February order, Trump invoked section 122 of the Trade Act of 1974, which allows for duties for up to 150 days to correct serious “balance of payments deficits” or head off an imminent depreciation of the dollar.

Thursday’s court ruling found the law was not an appropriate step for the kinds of trade deficits that Trump cited in his February order.

Meanwhile, Trump also said on Thursday he would give the European Union until 4 July to implement trade deal commitments before he raises tariffs on EU goods including cars to “much higher levels”.

The president said in a Truth Social post that he issued the new deadline during a “great call” with the European Commission president, Ursula von der Leyen, in which the two leaders also agreed that Iran could never have a nuclear weapon.

In a surprise move, Trump last Friday announced that he would raise tariffs on EU vehicles to 25% from the previously agreed 15% because the EU was not complying with the terms of a deal struck in Scotland last July.

The deal called for the EU to cut its tariffs on US industrial goods to zero and provide duty-free quotas on certain US farm and sea produce, but the implementing legislation has been slow to move through the European parliament.