Tariff court heard arguments

A federal trade court heard arguments on April 10 over the administration’s 10 percent global tariff, leaving the levy in place for now and import costs legally unresolved. (reuters.com) The case is before the United States Court of International Trade in New York, where 24 mostly Democratic-led states and two small businesses asked a three-judge panel to block tariffs that took effect on February 24. (reuters.com) The administration says it can use Section 122 of the Trade Act of 1974 to impose a temporary across-the-board tariff of as much as 15 percent for 150 days without prior approval from Congress. President Donald Trump set the rate at 10 percent after the Supreme Court struck down his earlier emergency-power tariffs in February. (pbs.org) (usnews.com) The judges pressed government lawyers on whether a long-running trade deficit is the kind of balance-of-payments problem Section 122 was written for. Challengers argued the statute was designed for short-term financial stress, not a standing tax on nearly all imports. (reuters.com) (bloomberg.com) For importers, the legal question is also a pricing question. Companies bringing in clothing, fabric, home textiles, machinery, and consumer goods still have to decide whether to absorb the 10 percent duty, raise prices, or delay orders while the court weighs the case. (reuters.com) (cit.uscourts.gov) Textile data released this week showed the strain already moving through supply chains tied to soft goods. India’s apparel exports to the United States fell 28.7 percent year over year in February, while broader textile and apparel shipments to the United States dropped about 29 percent, according to industry reporting based on Office of Textiles and Apparel data. (economictimes.indiatimes.com 1) (economictimes.indiatimes.com 2) The same analysis said U.S. imports from Bangladesh fell 16.4 percent in February, while Vietnam posted a 5 percent increase and China recorded the steepest drop at 45.2 percent. That mix suggests buyers are still shifting orders country by country even as overall demand stays weak. (economictimes.indiatimes.com) The lawsuits do not cover every tariff now on the books. Reuters reported that the challenge is aimed at the February 24 global levy, not separate duties imposed under other trade laws on products such as steel, aluminum, and copper. (reuters.com) No ruling came from Friday’s hearing, and the court has not said when it will decide. Until it does, importers are operating under a tariff that may expire after 150 days, be extended by Congress, or be thrown out by the judges. (usnews.com) (pbs.org)