Federal Court Hears Challenge to Trump's Latest Global Tariffs

Plaintiffs argue the president overstepped his authority in imposing temporary tariffs under a little-used trade law.

Apr. 10, 2026 at 8:54pm

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A dynamic, fragmented painting depicting symbols of the judicial system and finance, conveying the complex legal and economic issues at the heart of the tariffs case.The federal court's ruling on the legality of the president's latest tariffs could have far-reaching economic consequences.NYC Today

The U.S. Court of International Trade in New York heard oral arguments in a case challenging President Donald Trump's latest round of global tariffs, which he imposed after the Supreme Court struck down his previous tariffs. The plaintiffs argue Trump exceeded his authority under Section 122 of the Trade Act of 1974, which allows temporary tariffs to address 'fundamental international payments problems' but not broader trade deficits.

Why it matters

The outcome of this case could determine the limits of the president's power to unilaterally impose tariffs, a key part of Trump's economic policy. If the court rules against Trump, it could restrict his ability to use emergency trade powers to address trade imbalances in the future.

The details

After the Supreme Court in February struck down Trump's use of the International Emergency Economic Powers Act to impose global tariffs, the president quickly turned to Section 122 of the Trade Act of 1974. That law allows the president to impose temporary tariffs of up to 15% for 150 days to address 'fundamental international payments problems.' Trump announced 10% tariffs under Section 122, saying he'd raise them to 15%, though he hasn't done so yet. The tariffs are set to expire on July 24. Two dozen states and some businesses have challenged the new tariffs in court, arguing Trump misused the law to target trade deficits rather than payments crises.

  • The U.S. Court of International Trade heard oral arguments in the case on April 10, 2026.
  • The Section 122 tariffs are scheduled to expire on July 24, 2026.

The players

Donald Trump

The former president who imposed the global tariffs under dispute.

U.S. Court of International Trade

A specialized federal court in New York that is hearing the legal challenge to Trump's latest tariffs.

Dan Rayfield

The Attorney General of Oregon, one of the states challenging Trump's tariffs.

Jeffrey Schwab

Senior counsel and director of litigation for Liberty Justice Center, which represents some of the plaintiffs.

Ryan Majerus

A trade lawyer and partner at King & Spalding law firm who is a former U.S. trade official.

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What they’re saying

“I think the judges asked tough questions of all sides and were genuinely trying to find out what Congress meant when it passed section 122.”

— Jeffrey Schwab, Senior counsel and director of litigation, Liberty Justice Center

“I would be stunned if the challengers prevail. I just don't see them sticking their neck out on this one, given how temporarily it's in place and how much discretion these courts give to the president.”

— Ryan Majerus, Partner, King & Spalding law firm

What’s next

The U.S. Court of International Trade is expected to rule on the case before the Section 122 tariffs expire on July 24, 2026.

The takeaway

This case highlights the ongoing legal battles over the limits of the president's authority to unilaterally impose tariffs, a key part of Trump's economic policy. The outcome could set important precedents for future presidents seeking to use emergency trade powers to address trade imbalances.