States, Businesses Challenge Trump's 10% Global Tariffs in Court

The legality of President Trump's new tariffs under the Trade Act of 1974 is being tested in the U.S. Court of International Trade.

Apr. 10, 2026 at 2:22pm

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A vibrant, abstract painting of an American flag waving in the wind, with the stars and stripes repeated in overlapping, geometric waves of red, white, and blue, conveying the dynamic tensions in the legal dispute over presidential trade authority.The legal battle over President Trump's tariff powers could reshape the balance of trade policy between the executive and legislative branches.Washington Today

A group of Democratic-led states and small businesses have filed a lawsuit challenging President Donald Trump's new 10% global tariffs, which he imposed in February under the authority of the Trade Act of 1974. The plaintiffs argue that Trump is misusing the law and that a balance-of-payments crisis no longer exists, making the tariffs illegal. The court case will determine the legality of the president's actions.

Why it matters

The outcome of this case could have significant implications for the president's ability to unilaterally impose tariffs in the future. If the court rules against Trump, it would limit his executive authority over trade policy and potentially prevent him from using similar emergency powers to bypass Congress on tariff decisions.

The details

In February, President Trump imposed a new 10% global tariff under Section 122 of the Trade Act of 1974, which allows the president to surcharge imports up to 15% for up to 150 days to address a 'large and serious United States balance-of-payments deficit.' However, the plaintiffs in this case, which include 24 Democratic-led states and two small businesses, argue that the president is misusing the statute and that a balance-of-payments crisis no longer exists in the modern economy. They say Trump is simply imposing tariffs 'to deal with whatever trade issues he wants, its limits be damned.'

  • The U.S. Court of International Trade will hear the case on April 10, 2026.
  • The court's final ruling is expected to take several months.

The players

Donald Trump

The former president who imposed the new 10% global tariffs under the Trade Act of 1974.

Liberty Justice Center

The libertarian law firm representing the plaintiffs in the lawsuit against Trump's tariffs.

Timothy C. Brightbill

A trade lawyer at the Washington law firm Wiley Rein who expects the court to be 'skeptical of President Trump's ability to impose broad tariffs.'

Burlap & Barrel

A spice and e-commerce business that is one of the two small businesses suing over the tariffs.

Basic Fun!

A toy company that designs and markets brands like Tonka, Lincoln Logs, and K'nex, and is the other small business suing over the tariffs.

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What’s next

The three-judge panel at the U.S. Court of International Trade is expected to issue a ruling on the legality of Trump's tariffs in the coming months. Depending on the outcome, the case could potentially make its way to higher courts for further appeals.

The takeaway

This legal challenge highlights the ongoing tensions between the executive branch's trade powers and the limits imposed by Congress. The court's decision will help clarify the president's authority to unilaterally impose tariffs, which could have significant implications for future trade policy decisions.