Trump’s tariff powers tested again as judges question ‘deficit’ justification

South China Morning Post Legal & JudicialNews ReportEN 1 min read 100% complete by Khushboo RazdanApril 10, 2026 at 11:43 PM

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Trump’s tariff powers tested again as judges question ‘deficit’ justification

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A US Court of International Trade panel is reviewing the legality of tariffs imposed by former President Donald Trump in February under Section 122 of the Trade Act of 1974. This follows a previous Supreme Court ruling that struck down many of Trump's tariffs as unlawful. Section 122 allows temporary tariffs to address balance-of-payments issues. The plaintiffs are challenging the tariffs, arguing the administration may cycle through different statutes to keep tariffs in place. The judges questioned both sides, focusing on the "deficit" justification for the tariffs. The court has previously upheld Section 301 tariffs from Trump's first term, but struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

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Key Claims (5)

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Plaintiffs urged the court to block the tariffs before they expire.

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Section 122 measures are time-limited and must be referred to Congress after 150 days.

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Section 122 of the Trade Act of 1974 allows temporary tariffs to address US balance-of-payments pressures.

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The court previously rejected business challenges to Section 301 tariffs.

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A three-judge Court of International Trade panel in New York questioned the legality of tariffs imposed in February.

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Key Entities & Roles

Key Player Opposition Context

Congress 40% Judge Claire Kelly 40% New York 50% International Emergency Economic Powers Act ×260% Supreme Court 60% Court of International Trade 70% Section 301 ×370% Section 122 ×380% United States ×280% Donald Trump ×290%

Keywords

tariffs 100% section 122 tariffs 90% trade law 80% court of international trade 70% section 301 tariffs 70% legal challenge 60% balance-of-payments 60% ieepa 60% emergency powers 50% trade practices 50%