Trump's 10% global tariff faces test in US trade court
What's the story
A United States trade court is set to hear arguments on the legality of a 10% global import tax imposed by President Donald Trump. The tax, which came into effect on February 24, was challenged by 24 states and two small businesses. They argue that it violates a Supreme Court ruling that limited presidential authority to impose tariffs without congressional approval.
Legal debate
Legal basis of tariffs
The Trump administration imposed the tariffs under Section 122 of the Trade Act of 1974. This section allows duties up to 15% for up to 150 days on imports during "large and serious United States balance-of-payments deficits." However, the states and businesses argue this authority is only for short-term monetary emergencies, not routine trade deficits. The US Court of International Trade in New York will hear their case.
Legal precedent
Potential impact on presidential power
This is the first time a president has invoked Section 122 of the 1974 Trade Act to impose tariffs. The outcome of this case could redefine presidential power in imposing tariffs without congressional approval. Notably, Trump had previously faced a setback when the Supreme Court struck down similar tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
Legal focus
Limitations of the lawsuit
The lawsuits challenging the 10% global import tax do not contest other tariffs imposed by Trump under more traditional legal authority. These include recent tariffs on steel, aluminium, and copper imports. The hearings at the US Court of International Trade will determine whether Trump's use of Section 122 was legally justified or if it overstepped presidential authority as defined by previous court rulings.