The U.S. Court of International Trade’s 2-1 decision leaves the temporary tariffs in place for all other importers while any appeal by the Trump administration plays out. They are expected to expire in July.

The court ruled that Trump’s imposition of the tariffs under Section 122 of the Trade Act of 1974 was misguided. One of the judges said it was premature to grant victory to the plaintiffs.

While the ruling applies to a set of levies due to expire in about two months, it marks another major setback for Trump’s global tariff ambitions and comes a week before he is due to discuss trade tensions with Chinese President Xi Jinping in Beijing.

It sets the stage for another protracted legal battle over billions of dollars’ worth of tariff refunds three months after the U.S. Supreme Court struck down Trump’s sweeping global tariffs imposed under a national emergencies law.

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