Federal Court Hears Challenge to Trump's Latest Global Tariffs

The U.S. Court of International Trade considers whether the president's use of a little-known trade law to impose temporary tariffs is legal.

Apr. 10, 2026 at 10:11pm

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A cinematic painting of an empty government office space with a lone desk and chair in the center, the room bathed in warm, diagonal sunlight and deep shadows, conceptually representing the political and legal battles over trade policy.The federal court's ruling on the legality of the president's latest tariffs could have far-reaching implications for U.S. trade policy.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 imposed under Section 122 of the Trade Act of 1974. The tariffs, which can be up to 15% for 150 days without congressional approval, were Trump's alternative after the Supreme Court struck down his previous tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The judges questioned lawyers on both sides about the meaning and intent behind the 1974 law, which has never been used to impose tariffs before.

Why it matters

The outcome of this case could determine the legality of Trump's ability to unilaterally impose tariffs on imports as part of his economic policy, even after the Supreme Court rejected his previous tariff actions. The ruling could have significant implications for U.S. trade policy and relations with other countries.

The details

After the Supreme Court struck down Trump's use of IEEPA to impose global tariffs in February 2026, the president quickly turned to Section 122 of the 1974 Trade Act to impose 10% tariffs on imports, with the ability to raise them to 15%. Two dozen states and some businesses have challenged these new tariffs in court. The key question is whether Section 122, which is aimed at addressing 'fundamental international payments problems,' can be legally applied to counter trade deficits, which the government has previously argued are 'conceptually distinct' from payments issues.

  • The Supreme Court struck down Trump's IEEPA tariffs on February 20, 2026.
  • Trump announced 10% Section 122 tariffs shortly after the Supreme Court ruling.
  • The Section 122 tariffs are scheduled to expire on July 24, 2026.

The players

Donald Trump

The former president who imposed the global tariffs being challenged in court.

U.S. Court of International Trade

The specialized federal court in New York that heard oral arguments in the case challenging Trump's latest tariffs.

Dan Rayfield

The Attorney General of Oregon, one of the states challenging Trump's Section 122 tariffs.

Jeffrey Schwab

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

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 issue a ruling on the legality of the Section 122 tariffs in the coming weeks, before the tariffs are set to expire on July 24, 2026.

The takeaway

This case highlights the ongoing legal battles over President Trump's aggressive use of trade policy tools, even after the Supreme Court rejected his previous tariff actions. The outcome could significantly impact the president's ability to unilaterally impose tariffs in the future, with implications for U.S. trade relations globally.