A U.S. trade court is set to hear arguments on Friday over the legality of a 10% global import tariff imposed by Donald Trump, following lawsuits filed by 24 mostly Democratic-led states and two small businesses. The cases, to be reviewed by a three-judge panel at the U.S. Court of International Trade in New York, argue that the tariffs—implemented on February 24—circumvent a recent ruling by the U.S. Supreme Court that struck down many of Trump’s earlier tariff measures.
The Trump administration has defended the tariffs as a key component of its foreign policy strategy, asserting broad executive authority to act without congressional approval. Officials argue the move is justified under Section 122 of the Trade Act of 1974, which permits temporary tariffs of up to 15% in response to significant balance-of-payments deficits or threats to the U.S. dollar. The administration maintains that persistent trade imbalances—where imports exceed exports—warrant such action.
However, the plaintiffs contend that the law is intended only for short-term monetary emergencies and does not apply to routine trade deficits. They further argue that the new tariffs mirror previously invalidated measures, highlighting the Supreme Court’s recent rejection of Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping duties. The outcome of the case could have significant implications for the scope of presidential authority over trade policy in the United States.
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