A US federal court has struck down President Donald Trump administration’s 10 per cent blanket global tariffs, calling them unlawful in a major setback to the White House’s trade policy.

According to reports, the US Court of International Trade, in a split 2-1 ruling, said the administration failed to justify the tariffs under Section 122 of the 1974 Trade Act. The court noted that the government did not establish the existence of a serious balance-of-payments crisis required under the law.

The tariffs had been imposed earlier this year after the US Supreme Court invalidated a broader set of import duties introduced by the Trump administration.

The latest ruling directs the government to immediately stop collecting the levies from companies involved in the case and refund the duties already paid by them. However, the tariffs will continue for other importers till July.

Under Section 122, a US president can impose tariffs of up to 15 per cent without Congressional approval under specific conditions. The court, however, ruled that those conditions had not been met in this case. Reacting to the verdict, President Trump said his administration would explore alternative measures to pursue its trade agenda.