Federal Court Hears Challenge to Trump's Latest Global Tariffs

The U.S. Court of International Trade is considering whether the president can use a 1970s-era law to impose temporary tariffs on imports to address trade deficits.

Apr. 10, 2026 at 9:18pm

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A dimly lit, cinematic painting of an empty government office or courtroom, with warm sunlight streaming through the windows and casting deep shadows across the room, creating a sense of tension and uncertainty around the political and economic issues at stake.As the legal battle over presidential tariff powers continues, the federal courthouse stands as a somber backdrop to the high-stakes political and economic drama unfolding within.NYC Today

The U.S. Court of International Trade is hearing oral arguments in a case challenging President Donald Trump's use of a 1974 trade law to impose temporary global tariffs on imports. The Supreme Court previously struck down Trump's use of emergency powers to justify larger, more sweeping tariffs, but the president quickly turned to a different law that allows him to impose tariffs of up to 15% for 150 days without congressional approval. Critics argue this law was intended to address financial crises, not trade deficits, and that it is now obsolete.

Why it matters

The outcome of this case could determine the limits of the president's authority to unilaterally impose tariffs, a key part of Trump's economic policy. If the court rules against the administration, it could restrict the president's ability to use temporary tariffs to address trade imbalances, potentially impacting ongoing trade negotiations and the broader economy.

The details

After the Supreme Court struck down Trump's use of emergency powers to justify global tariffs in February, the president quickly turned to Section 122 of the 1974 Trade Act. This law allows the president to impose temporary tariffs of up to 15% for 150 days without congressional approval, if he determines there is a 'fundamental international payments problem.' The administration argues trade deficits qualify, but critics say the law was intended for financial crises, not trade imbalances. The court must now decide whether Section 122 can be used in this way.

  • The U.S. Court of International Trade is hearing oral arguments on the case on April 10, 2026.
  • The temporary tariffs imposed under Section 122 are scheduled to expire on July 24, 2026.

The players

President Donald Trump

The former U.S. president who imposed the temporary global tariffs using Section 122 of the 1974 Trade Act after the Supreme Court struck down his previous use of emergency powers to justify larger tariffs.

U.S. Court of International Trade

A specialized federal court in New York that is hearing the oral arguments in the case challenging Trump's use of Section 122 to impose temporary global tariffs.

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What they’re saying

“The president had alternatives to IEEPA. The quickest option was Section 122 of the Trade Act of 1974, which allows the president to impose global tariffs of up to 15% for 150 days, after which congressional approval is needed to extend them.”

— Paul Wiseman, AP Writer

“Awkwardly for Trump, his own Justice Department argued in a court filing last year that the president had needed to invoke IEEPA because Section 122 did 'not have any obvious application'' in fighting trade deficits, which it called 'conceptually distinct'' from payments problems.”

— Paul Wiseman, AP Writer

What’s next

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

The takeaway

This case highlights the ongoing legal and political battles over the president's authority to unilaterally impose tariffs, a key part of Trump's economic policy. The outcome could significantly impact the administration's ability to use temporary tariffs to address trade imbalances going forward.