US Trade Court Weighs Legality of Trump's 10% Global Tariff

Lawsuit challenges tariffs imposed under obscure 1970s law

Apr. 10, 2026 at 8:26pm

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A solitary shipping container in a dimly lit port terminal, with warm sunlight casting dramatic shadows across the scene, conveying a sense of quiet contemplation and the weight of trade policy decisions.The legal battle over the president's tariff powers casts a long shadow over the nation's ports and trade flows.Los Angeles Today

A U.S. trade court is considering the legality of a 10% global import tax imposed by the Trump administration, which several states and small businesses say sidesteps a Supreme Court ruling that invalidated most of Trump's previous tariffs. The tariffs were imposed under a little-used 1970s law meant to address balance of payments deficits, but the plaintiffs argue that routine trade deficits do not qualify.

Why it matters

This case tests the limits of presidential authority over trade policy, with the Trump administration claiming sweeping powers to impose tariffs unilaterally. The outcome could restrict or expand the president's ability to use obscure laws to bypass Congress and the courts on trade matters.

The details

The hearing is before a three-judge panel of the U.S. Court of International Trade. The plaintiffs, a group of 24 mostly Democratic-led states and two small businesses, argue that the Trade Act's tariff authority is meant only to address short-term monetary emergencies, not routine trade deficits. The administration has said the global tariffs are a legal and appropriate response to persistent trade deficits.

  • The hearing took place on April 10, 2026.
  • The new tariffs went into effect on February 24, 2026.
  • The Supreme Court struck down many of Trump's previous tariffs on February 20, 2026, the same day he announced the new 10% global tariff.

The players

Trump administration

The federal government under former President Donald Trump, which imposed the new 10% global tariff.

24 states and 2 small businesses

A group of mostly Democratic-led states and small businesses that sued the Trump administration to stop the new tariffs.

U.S. Court of International Trade

The federal trade court hearing the case and considering the legality of the Trump administration's 10% global tariff.

Brian Marshall

The lawyer representing the state of Oregon in the lawsuit against the Trump administration's tariffs.

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What they’re saying

“They have a different meaning of what 'balance of payments deficits' means.”

— Brian Marshall, Lawyer for the state of Oregon

What’s next

The three-judge panel at the U.S. Court of International Trade will issue a ruling on the legality of the Trump administration's 10% global tariff in the coming weeks.

The takeaway

This case highlights the ongoing tensions between the executive branch and Congress over trade policy, with the Trump administration seeking to expand presidential authority over tariffs despite a Supreme Court ruling limiting that power. The outcome could have significant implications for future presidents' ability to unilaterally impose tariffs.