Federal Court Hears New Case Against Trump Tariffs Imposition

US Court of International Trade Hears Oral Arguments on Tariffs

A three-judge panel of the US Court of International Trade in New York is set to hear oral arguments on Friday regarding a challenge to temporary tariffs imposed by President Donald Trump’s administration.

The tariffs, which were introduced in February, are part of the administration’s economic policy aimed at reducing trade deficits. The tariffs, which amount to 10 percent of global imports, have been challenged by several US states and small businesses who argue that they sidestep a Supreme Court ruling that invalidated most of Trump’s previous tariffs.

The lawsuit, filed by 24 mostly Democratic-led states and two small businesses, seeks to block the tariffs rather than allow them to expire on their normal 150-day timeline. The plaintiffs claim that the tariffs are based on an archaic authority that was meant to address significant “balance-of-payments deficits” in the 1970s, but not routine trade deficits.

The Trump administration argues that global tariffs are a legal and appropriate response to a persistent trade deficit caused by the US importing more goods than it exports. The administration claims that President Trump is lawfully using executive powers granted by Congress to address the country’s balance of payments crisis.

The court will consider whether the tariffs can be upheld under Section 122 of the Trade Act of 1974, which authorizes duties of up to 15 percent for up to 150 days on imports during “large and serious” trade deficits or to prevent imminent depreciation of the dollar. The outcome of this case could have implications for Trump’s economic policy and his use of executive authority in imposing tariffs.

The two lawsuits do not challenge other Trump tariffs made under more traditional legal authority, such as recent tariffs on steel, aluminum, and copper imports.

Source: Al Jazeera