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Trump Defends Section 122 in Latest Tariff Legal Challenge
Justice Department lawyers said the 10% tariff is lawful under Section 122, while states and small businesses seek to block it.
- On Tuesday, April 7, the Justice Department defended President Donald Trump's 10% global tariffs in the Court of International Trade, arguing the president acted within his legal authority under Section 122 of the Trade Act.
- The Supreme Court ruled in February that Trump overstepped by using the International Emergency Economic Powers Act for previous tariffs, prompting him to invoke Section 122 of the Trade Act for these new 10% import taxes.
- Liberty Justice Center attorneys argued Section 122 applies only to international balance-of-payments problems, which they claim do not exist under floating exchange rates; the Department countered this interpretation as "absurd."
- Regarding the estimated $175 billion in collected import taxes, the Court has not decided on refunds; the Treasury Secretary stated he does not expect consumers to receive money back even as Trump suggests rates could rise to 15%.
- Research indicates that Americans bear most import tax costs, yet the Department argues the law permits tariffs for 150 days to address payment issues, claiming revenue could fund military spending and other national goals.
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DOJ: Courts must defer to Trump’s findings in Section 122 tariff suit
Courts cannot assess whether the U.S. faces a “serious balance-of-payments deficit” and should instead defer to President Trump’s finding that it does, the Justice Department told the Court of International Trade on Friday, in its defense of 10 percent tariffs the U.S. imposed on most U.S. trading partners under Section 122 of the Trade Act of 1974.
Coverage Details
Total News Sources11
Leaning Left1Leaning Right2Center7Last UpdatedBias Distribution70% Center
Bias Distribution
- 70% of the sources are Center
70% Center
C 70%
R 20%
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