Overview
- The Court of International Trade’s three-judge panel in New York heard challenges Friday to the president’s 10% near‑global tariffs issued under Section 122 after the Supreme Court voided his IEEPA tariffs on February 20.
- Judges pressed the government on Section 122’s requirement for a “large and serious” balance‑of‑payments deficit and noted that a trade gap alone may not qualify.
- Justice Department lawyer Brett Shumate could not identify a current balance‑of‑payments deficit, drawing skepticism about the factual basis for invoking the law.
- Twenty‑four states and two small businesses asked the court to block the tariffs before their July 24 expiration to prevent the administration from cycling through statutes to keep them in place.
- Section 122 permits up to 15% duties for 150 days to address short‑term payments crises, a rarely used 1974 power never before applied to sweeping, uniform tariffs, and any ruling is likely to head to the Federal Circuit and possibly the Supreme Court.