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Federal court hears new case against Trump’s latest global tariffs

Plaintiffs say the law cannot cover routine trade deficits, while the administration argues persistent balance-of-payments problems justify tariffs of up to 15%.

  • On Friday, the U.S. Court of International Trade heard oral arguments challenging President Donald Trump's 10% global tariffs under Section 122 of the Trade Act of 1974, with a three-judge panel questioning whether the decades-old statute applies to routine trade deficits.
  • Trump implemented these tariffs after the Supreme Court ruled in February that his earlier use of the International Emergency Economic Powers Act was unlawful, forcing the administration to invoke Section 122 as a legal alternative.
  • A coalition of 24 states and two small businesses sued to block the tariffs, arguing Section 122 is obsolete, while the White House maintains Trump is "lawfully using the executive powers granted to him" to address a balance-of-payments crisis.
  • During the three-hour hearing, judges appeared skeptical of the government's legal basis, with the administration's attorney unable to clearly define how a 1974 statute applies to modern trade deficits.
  • The court issued no timeline for a ruling, though the tariffs are scheduled to expire July 24, and the administration has accelerated Section 301 investigations to potentially replace them if the court invalidates the current levies.
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Federal Court Hears New Case on Trump Tariffs

·Washington, United States
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New Strait Times broke the news in Malaysia on Friday, April 10, 2026.
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