Court Questions Trump's Tariffs
A U.S. federal trade court has reportedly questioned the legality of President Trump’s 10% global tariff, creating fresh uncertainty for businesses that trade with the United States. That judicial scrutiny follows a Supreme Court ruling that had already cast doubt on parts of the administration’s tariff architecture, and Britain’s House of Commons Library says the U.S. has imposed tariffs on most British goods and is using or considering sectoral measures on products such as semiconductors and pharmaceuticals. (caliber.az; commonslibrary.parliament.uk)
A U.S. trade court is questioning whether President Donald Trump had legal authority to impose his new 10% tariff on most imports. (reuters.com) A three-judge panel at the U.S. Court of International Trade heard arguments on April 10 in lawsuits brought by 24 mostly Democratic-led states and by small businesses. The tariff took effect on February 24 under Section 122 of the Trade Act of 1974. (reuters.com) During the hearing, judges pressed government lawyers on whether a large U.S. trade deficit qualifies as the kind of “balance-of-payments” problem that Section 122 was written to address. That law allows tariffs of up to 15% for 150 days without Congress. (politico.com) The case landed in court after the Supreme Court ruled 6-3 on February 20, 2026, that the International Emergency Economic Powers Act does not authorize a president to impose broad import tariffs. Chief Justice John Roberts wrote the majority opinion in the consolidated cases Learning Resources, Inc. v. Trump and Trump v. V.O.S. Selections, Inc. (scotusblog.com) That ruling knocked out the administration’s earlier “reciprocal” tariff structure and forced the White House onto a narrower statute with stricter limits. Trade lawyers said the shift matters because Section 122 had rarely been tested as a tariff tool and expires after 150 days unless Congress acts. (sidley.com; politico.com) The White House had announced the original 10% baseline tariff on April 2, 2025, saying it would apply to all countries not hit with higher country-specific rates. The administration said the tariff would begin at 12:01 a.m. Eastern time on April 5, 2025. (whitehouse.gov) For Britain, the House of Commons Library said on April 14, 2026, that a 10% tariff applies to most UK goods entering the United States. It also said the U.S. has imposed 25% tariffs on steel, aluminium and derivative goods, raised that rate to 50% on June 4, 2025, and kept open possible exemptions or future measures in sectors including semiconductors and pharmaceuticals. (commonslibrary.parliament.uk) The same Commons Library briefing said the UK-U.S. Economic Prosperity Deal announced on May 8, 2025 is only partially implemented. It said pharmaceuticals can now enter the U.S. tariff-free under that arrangement, while up to 100,000 UK passenger vehicles can enter at a 10% tariff. (commonslibrary.parliament.uk) Trump has defended tariffs as a way to cut trade deficits and push companies to make goods in the United States. Opponents in the court cases said the administration is trying to preserve a global import tax after the Supreme Court rejected its broader emergency-powers theory. (whitehouse.gov; pbs.org) The trade court has not ruled yet, but its questions showed the legal fight over Trump’s tariff system did not end with the Supreme Court’s February decision. For importers, exporters and foreign governments, the next answer now depends on whether Section 122 can carry a tariff policy the justices already narrowed once. (reuters.com; scotusblog.com)
