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

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).

A US federal court is hearing a case in New York challenging temporary tariffs imposed by Donald Trump after the Supreme Court struck down his previous tariff measures. Twenty-four states and two small businesses are suing the Trump administration, arguing the 10% global import tax, implemented in February, circumvents the Supreme Court ruling. The plaintiffs seek to block the tariffs, arguing they are based on outdated authority intended to protect the US dollar in the 1970s, not to address routine trade deficits. Oregon's lawyer argued against allowing the tariffs to expire naturally, fearing Trump would invoke other laws to maintain them indefinitely. Trump has made tariffs a central pillar of his foreign policy, claiming broad authority to impose them without Congressional input.

The U.S. Court of International Trade is hearing a case challenging President Trump's latest global tariffs. These tariffs were implemented after the Supreme Court struck down his initial attempt to impose broader tariffs under the International Emergency Economic Powers Act (IEEPA) in February 2026. Trump then invoked Section 122 of the Trade Act of 1974, allowing temporary tariffs of up to 15%. He imposed 10% tariffs, arguing that America's trade deficit constitutes a "fundamental international payments problem," the justification required by Section 122. The lawsuit aims to overturn these tariffs, which are scheduled to expire in July, by arguing that trade deficits do not qualify under Section 122.