Court hears challenge to Trump's tariffs

A federal trade court in New York heard arguments on April 10 over whether President Donald Trump can keep a 10 percent global tariff in place without Congress. (opb.org) The case is before the United States Court of International Trade, and Oregon is leading a coalition of 24 states. Two small businesses also sued, arguing the tariff took effect on February 24 under a law the White House is stretching too far. (usnews.com) Trump announced the tariff on February 20, hours after the Supreme Court struck down a broader set of his earlier tariffs that had relied on the International Emergency Economic Powers Act of 1977. The justices said that emergency-powers law did not authorize tariffs. (pbs.org) The new fight turns on Section 122 of the Trade Act of 1974, a backup power that lets a president impose tariffs of up to 15 percent for 150 days. Any extension beyond that window requires congressional approval. (pbs.org) That law was written for “large and serious” balance-of-payments problems, which are closer to a currency-financing crunch than an ordinary trade gap. The states say the United States does not face that kind of crisis now, pointing to deep Treasury markets and steady access to foreign capital. (katu.com) The judges spent more than three hours pressing both sides on what Congress meant by “balance-of-payments deficits” in 1974 and whether that phrase fits today’s economy. Section 122 has never been used before to impose tariffs, which left the panel parsing a half-century-old statute in real time. (opb.org) The administration says the tariff is a lawful response to a persistent deficit in goods trade and a proper use of presidential trade authority. The challengers say Trump is trying to do through a temporary statute what the Supreme Court already said he could not do through emergency powers. (usnews.com) The lawsuit was filed on March 5 as Oregon v. Trump, Court No. 1:26-cv-01472, according to Oregon’s litigation tracker. Oregon Attorney General Dan Rayfield said after Friday’s hearing that “Congress sets tariffs, not the president,” while trade lawyer Ryan Majerus told the Associated Press he expects the court to defer because the measure expires soon. (doj.state.or.us) (katu.com) (opb.org) If the court lets Section 122 stand, Trump keeps a short-term tariff tool that can run until July 24. If the court narrows it, the ruling would add another limit on how far a president can go in setting import taxes without a vote from Congress. (opb.org)