U.S. court reviews 10% global tariff

A three-judge United States trade court is weighing whether President Donald Trump’s 10 percent tariff on most imports is legal. (politico.com) The hearing took place Friday, April 10, in the United States Court of International Trade after 24 mostly Democratic-led states and two small businesses sued to block the tariff. The import tax took effect on February 24. (usnews.com) Trump imposed the tariff under Section 122 of the Trade Act of 1974, a law that lets a president levy duties of up to 15 percent for up to 150 days to address a “large and serious” balance-of-payments deficit. Judges questioned whether today’s trade deficit fits that older legal standard. (politico.com) The case landed in court less than two months after the Supreme Court, in a 6-3 ruling on February 20, struck down Trump’s broader tariffs imposed under the International Emergency Economic Powers Act. The justices said that emergency-powers law did not authorize the president to impose sweeping tariffs without clearer approval from Congress. (politico.com) State lawyers and business plaintiffs say the new tariff is an attempt to rebuild a global import tax after that Supreme Court loss. They argue Section 122 was written for a narrower currency-and-payments problem tied to the 1970s economy, not for a standing trade gap in 2026. (politico.com) The Trump administration told the court the February tariff falls within the president’s authority and can stay in place for the statute’s 150-day window. Politico reported the White House also signaled it wants to use the measure as a bridge while pursuing other tariff authorities that could support longer-lasting duties. (politico.com) The judges did not say when they will rule, but the current tariff is set to expire in July unless Congress extends it. One judge, Timothy Stanceu, said from the bench that the panel was trying to figure out how to apply a 1974 law to the trade system of 2026. (politico.com) A separate fight is now moving from the courtroom to Customs and Border Protection’s payment system. The agency said it will launch the first phase of its refund process on April 20 for certain duties collected under the International Emergency Economic Powers Act. (cbp.gov) Customs and Border Protection said the new system, called Consolidated Administration and Processing of Entries, will start with certain unliquidated entries and certain entries within 80 days of liquidation. Importers and customs brokers must file declarations through the Automated Commercial Environment portal, and refunds will include interest. (cbp.gov) That April 20 start does not mean companies will get money back that day. Politico reported that Customs can begin processing the first batch then, but many importers may still wait longer before refunds are actually paid. (politico.com)