A federal trade court blocked President Donald Trump’s second major global tariff plan on Thursday, months after the Supreme Court struck down the president’s ability to unilaterally impose tariffs under the International Economic Emergency Powers Act.

Following the Supreme Court’s 6-3 opinion in February that kneecapped Trump’s broad authority to pursue tariffs during national emergencies under the IEEPA, he immediately adopted an across-the-board global 10% tariff. Trump justified these new tariffs through Section 122 of the Trade Act of ⁠1974, but a group of small businesses challenged the duties.

The trade court panel ruled 2-1 in favor of the plaintiffs Thursday. The opinion cited Trump’s improper invocation of Section 122, which requires “fundamental international payments problems” or the need to “deal with large and serious United States balance-of-payments deficits,” among other conditions.

“The President’s Proclamation fails to assert that those required conditions have been satisfied,” the opinion stated.

The administration is likely to appeal the decision, which would place the case in front of the U.S. Court of Appeals for the Federal Circuit. From there, if appealed again, it would proceed to the Supreme Court.

This is a developing story and will be updated.