A federal court ruled Thursday that the global 10% tariffs imposed by U.S. President Donald Trump were unlawful, dealing another legal setback to the administration’s trade policy.

In a 2-1 decision, judges on the United States Court of International Trade found that the Trump administration improperly interpreted the law it used to justify the sweeping tariffs.

The ruling marks the second major judicial rebuke of Trump’s tariff program. Earlier this year, the Supreme Court of the United States upheld a lower court decision blocking a previous round of tariffs introduced by the administration.

Thursday’s decision grants an injunction benefiting two small businesses and the state of Washington, though the court dismissed claims brought by a broader coalition of states, ruling they lacked legal standing.

At the center of the dispute was the interpretation of the phrase “balance-of-payments deficits” under Section 122 of the Trade Act of 1974. The administration argued the term was effectively equivalent to a trade deficit, but the court rejected that position.

“It is clear that Congress was aware of the differences in the words it chose,” the majority opinion stated.

The broader implications of the ruling, including whether the tariffs will immediately be halted nationwide, remain uncertain.