A U.S. court decided that President Donald Trump’s 10% global tariffs were not legal. The court in New York found that the government went beyond its power by using a 1974 trade law to set these tariffs. This is an important loss for the president’s policy to protect U.S. businesses with broad import taxes.

The government used the Trade Act of 1974 to begin the tariffs, saying they were needed to help the economy. However, the court said the current trade deficit does not meet the law’s standards for a crisis. The court only blocked the tariffs for three companies directly affected.

Most U.S. importers still have to pay the tariffs for now. The government is expected to appeal the ruling in a higher court. The case could decide how much power the president has to control trade in the future.