Overview
- The Court of International Trade’s three-judge panel heard arguments Friday at 10 a.m. ET on lawsuits from 24 states and two small businesses seeking to block President Trump’s 10% global tariff.
- Trump announced the import tax on Feb. 20 under Section 122, a law that allows duties up to 15% for 150 days during a balance-of-payments crisis in a first-of-its-kind use for broad tariffs.
- The challengers say the statute targets short currency or payments crises, not a trade deficit, and the small-business plaintiffs describe paying the charges upfront when shipments arrive.
- Government lawyers argue Congress long delegated authority to manage foreign trade and that Section 122 gives the president clear power to impose temporary tariffs.
- Any ruling could move to the U.S. Court of Appeals for the Federal Circuit and then to the Supreme Court, which could set new limits on executive tariff power.