Trade Court Hears Arguments on Trump's 10% Global Tariffs

The U.S. Court of International Trade heard oral arguments on April 10, 2026, regarding the legality of a 10% global import tariff imposed by Donald Trump. The tariffs, implemented on February 24, were issued under Section 122 of the Trade Act of 1974 after the Supreme Court of the United States struck down a previous attempt to use the International Emergency Economic Powers Act (IEEPA) in February.

A coalition of 24 mostly Democratic-led states, including Oregon, California, and New York, alongside small businesses such as Basic Fun and Burlap and Barrel, are challenging the tariffs. Plaintiffs argue that the administration is improperly using a provision meant for balance-of-payments deficits to address routine trade deficits, asserting the 1974 statute is obsolete in the current economic system.

During the proceedings, Judge Timothy C. Stanceu questioned whether a trade deficit is equivalent to a balance-of-payments deficit, while Chief Judge Mark A. Barnett expressed skepticism regarding the legal standing of the suing states. Assistant Attorney General Brett Shumate argued that the president possesses broad discretion to identify and address international payments problems.

The Justice Department faces potential contradictions, as it previously argued in a court filing that Section 122 had no obvious application for fighting trade deficits. The tariffs are currently scheduled to expire on July 24, 2026, following a 150-day window, unless Congress extends them or the court rules otherwise.