U.S. court reviews 10% tariff

A federal trade court is weighing whether President Donald Trump can keep a 10% tariff on most imports that took effect on February 24. (reuters.com) The case was argued on Friday, April 10, before a three-judge panel of the United States Court of International Trade in New York. The plaintiffs are 24 mostly Democratic-led states and two small businesses seeking to block the tariff. (reuters.com) Trump imposed the duty under Section 122 of the Trade Act of 1974, a law that lets a president add a temporary import surcharge of up to 15% for as long as 150 days to address “fundamental international payments problems.” Customs and Border Protection said the added 10% duty applies to imported articles of every country during that period. (federalregister.gov, content.govdelivery.com) The dispute follows a February 20 Supreme Court ruling that struck down Trump’s earlier sweeping tariffs imposed under the International Emergency Economic Powers Act. In that 6-3 decision, Chief Justice John Roberts wrote that the 1977 emergency law did not authorize tariffs. (congress.gov, scotusblog.com) States and businesses told the trade court that the new tariff sidesteps that ruling by shifting to a different statute written for balance-of-payments crises. Bloomberg reported their lawyers argued the law is outdated and tied to a monetary system the United States left decades ago. (bloomberg.com, reuters.com) Judges pressed government lawyers on whether a persistent trade deficit is enough to trigger Section 122. Reuters reported the panel questioned whether a large trade gap, by itself, fits the statute’s requirement for “fundamental” international payments problems. (reuters.com) The administration says the law gives Trump room to act quickly without waiting for Congress. The White House said the surcharge was meant to address international payment problems and “rebalance” trade relationships for American workers, farmers and manufacturers. (whitehouse.gov, whitehouse.gov) The court has not ruled yet, but the clock in the statute is part of the case. Section 122 allows the surcharge for 150 days unless Congress extends it, so the legal fight is running alongside a built-in deadline. (law.cornell.edu, federalregister.gov) For importers, the case turns on a basic question: whether the president can keep using emergency-style executive tools to tax goods at the border after the Supreme Court narrowed one route in February. The answer will shape what companies pay now and how much tariff authority remains in the White House. (politico.com, reuters.com)