A federal court ruled Thursday against the new global tariffs that President Donald Trump imposed after a stinging loss at the Supreme Court.

A split three-judge panel of the Court of International Trade in New York found the 10% global tariffs were illegal after small businesses sued.

The court ruled 2-1 that Trump overstepped the tariff power that Congress had allowed the president under the law. The tariffs are “invalid″ and ”unauthorized by law,” the majority wrote.

The third judge on the panel found the law allows the president more leeway on tariffs.

If the administration appeals Thursday’s decision, as expected, it would first turn to the U.S. Court of Appeals for the Federal Circuit, based in Washington, and then, potentially, the Supreme Court.

At issue are temporary 10% worldwide tariffs the Trump administration imposed after the Supreme Court in February struck down even broader double-digit tariffs the president had imposed last year on almost every country on Earth. Those tariffs, invoked under Section 122 of the Trade Act of 1974, were set to expire July 24.

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