States sue over tariffs

A federal trade court is weighing whether President Donald Trump can keep a 10 percent tariff on imports from nearly every country under a law Congress passed in 1974. (apnews.com) A coalition of 24 states, led by Oregon, challenged the tariffs in the United States Court of International Trade in New York, where judges heard more than three hours of arguments on Friday, April 10. Oregon Attorney General Dan Rayfield said the states asked the court to block the duties and argued that “Congress sets tariffs, not the president.” (opb.org) (doj.state.or.us) The dispute centers on Section 122 of the Trade Act of 1974, a statute that lets a president impose a temporary import surcharge of up to 15 percent for 150 days to address what the law calls “fundamental international payments problems.” Trump invoked that law on February 20 and put the 10 percent tariff into effect on February 24. (federalregister.gov) (content.govdelivery.com) This case exists because the Supreme Court struck down Trump’s earlier global tariffs on February 20 in a 6-3 ruling, holding that the International Emergency Economic Powers Act did not authorize tariffs. The administration moved to Section 122 the same day as a replacement legal path. (opb.org) (everycrsreport.com) The states say Section 122 was written for a narrow balance-of-payments crisis, not for a standing trade deficit with the rest of the world. Oregon’s Justice Department said the United States does not face the kind of financing or foreign-currency shortage the law describes, pointing instead to a Treasury market of about $30 trillion with roughly $1.2 trillion in daily trading. (doj.state.or.us) Trump says the tariffs are needed to cut longstanding trade deficits, and his February proclamation said Section 122 gives him authority to use import restrictions to address international payments problems. The White House document also said the administration had received advice from senior officials before acting. (whitehouse.gov) At the hearing, judges pressed both sides on how to read a half-century-old law that had never been used before for tariffs. Politico reported the panel sounded perplexed about whether Trump had properly invoked the statute, while AP quoted former trade official Ryan Majerus saying he would be “stunned” if the challengers won. (politico.com) (opb.org) The timing is tight because Section 122 tariffs cannot last longer than 150 days without an act of Congress. Customs guidance says the current duties run through July 24, 2026, unless they are ended earlier or extended by lawmakers. (content.govdelivery.com) (federalregister.gov) The court’s next move will decide whether Trump keeps collecting the temporary surcharge while the broader fight over presidential tariff power continues. Oregon is also pushing for refunds, arguing that households and businesses have already paid the bill. (doj.state.or.us) (opb.org)