Court hears challenge to tariffs

A federal trade court heard arguments on April 10 over whether President Donald Trump can keep a 10 percent tariff on most imports in place. The case is now before the United States Court of International Trade in New York. (reuters.com) Oregon is leading one of the lawsuits with 23 other mostly Democratic-led states, and two small businesses filed a separate challenge. The states and businesses are asking judges to block tariffs that took effect on February 24. (opb.org) The administration says Trump used Section 122 of the Trade Act of 1974, a law that lets a president impose a temporary import surcharge of up to 15 percent for as long as 150 days without new approval from Congress. Trump’s February order set the rate at 10 percent. (whitehouse.gov, law.cornell.edu) That law is written for “large and serious” balance-of-payments problems, a term tied to the nation’s international accounts rather than a simple gap between imports and exports. During the hearing, judges pressed government lawyers on whether a trade deficit alone fits that standard. (axios.com, reuters.com) The fight reached this court after the Supreme Court in February struck down Trump’s broader tariff program under the International Emergency Economic Powers Act, the emergency law he had used before. The new 10 percent tariff was the administration’s replacement. (chicagotribune.com, politico.com) The Court of International Trade is a specialized federal court that handles customs and trade disputes, which is why this case moved there after the Supreme Court narrowed the administration’s options. A three-judge panel heard about three hours of argument on Friday. (pbs.org, abcnews.go.com) Lawyers for the states argued that Congress, not the White House, controls tariff policy and that Section 122 was never meant to support a broad global tariff. Oregon Attorney General Dan Rayfield said after the hearing that the president had exceeded his authority. (katu.com, oregonlive.com) The Justice Department argued that Section 122 gives the president room to respond quickly to international payments problems and said the February order falls within that grant of power. The White House has said the tariff is meant to address what it calls “fundamental international payment problems.” (whitehouse.gov, reuters.com) The judges did not rule from the bench on April 10, and no decision date was announced. Until the panel rules, the latest round of tariffs remains in place while the legal fight continues. (abcnews.go.com, opb.org)