Court hears tariff challenge

A federal trade court spent more than three hours Friday weighing whether President Donald Trump’s latest global tariffs can stay in place. (opb.org) The hearing was in the U.S. Court of International Trade in New York, before a three-judge panel in two linked cases: one brought by Oregon and other states, and another by businesses including Burlap and Barrel. (cit.uscourts.gov) Oregon Attorney General Dan Rayfield said he is leading 23 other state attorneys general in the suit, which challenges the administration’s use of Section 122 of the Trade Act of 1974. (ktvz.com) Section 122 lets a president impose a temporary import surcharge of up to 15% for 150 days, unless Congress extends it. Trump used that authority after the Supreme Court struck down his earlier tariffs on February 20. (law.cornell.edu) (scotusblog.com) The earlier case turned on a different law, the International Emergency Economic Powers Act, a 1977 statute the administration had used to justify much broader tariffs. In a 6-3 ruling, the Supreme Court said that law did not clearly authorize tariffs. (scotusblog.com) (politico.com) Trump then issued a new proclamation imposing a 10% global import surcharge under Section 122, effective February 24 and set to run until July 24, 2026. The White House said the measure was aimed at “fundamental international payments problems.” (whitehouse.gov) (federalregister.gov) At Friday’s hearing, judges pressed both sides on what Congress meant by terms like “balance-of-payments deficits” when it wrote the 1974 law. The provision has rarely been tested in court, and the panel focused on whether Trump’s trade-deficit theory fits the statute. (opb.org) Rayfield said the administration is trying to keep the same tariff policy alive under a different label after losing at the Supreme Court. He said a ruling could come in weeks or months, and he expects an appeal if the government loses. (ktvz.com) The administration argues Section 122 gives the president a lawful backup tool, and some trade lawyers told The Associated Press the court may defer to that reading, especially because the tariffs expire in a little more than three months. (opb.org) What the court decides next will determine whether Trump’s stopgap tariffs last until July 24 or are blocked sooner, and whether the fight over refunds moves into another round of appeals. (opb.org) (ktvz.com)