A specialized federal court in New York delivered a new blow to President Donald Trump’s effort to impose widespread tariffs, ruling against the levies the president imposed after the February Supreme Court decision that eliminated most of his emergency import taxes.

Thursday’s ruling by a two-judge panel of the U.S. Court of International Trade held that the president’s order imposing a 10 percent global tariff under Section 122 of a 1974 trade law was invalid. Trump cited the nation’s trade deficit as justification for his latest tariffs. But under the law the president cited, the United States must be suffering “large and serious” balance-of-payments deficits, which the court said was not the case.

The court granted a summary judgment in favor of the plaintiffs, Burlap & Barrel, a New York-based online spice retailer, and Basic Fun!, a toy company in Florida, as well as Washington state.

The Section 122 tariffs were scheduled to expire in late July. The Trump administration has said it planned to replace them with permanent import taxes using different legal authorities.