US Trade Court Tests Legality of Trump’s Sweeping 10% Tariff

NewsDesk MC April 10, 2026April 10, 2026 aluminum tariffs, balance of payments, copper imports, donald trump, economic policy, executive power, federal court, global tariffs, import tax, international trade, legal challenge, monetary policy, Section 122, small businesses, state governments, steel tariffs, tariffs, Trade Act 1974, trade deficit, trade law, US Court of International Trade, US economy, US Supreme Court, US trade policy

New York — A U.S. trade court on Friday is set to hear arguments on the legality of a 10% global tariff imposed by Donald Trump, following challenges from states and small businesses that argue the measure circumvents a recent Supreme Court ruling limiting his tariff powers.

A three-judge panel at the US Court of International Trade will consider lawsuits filed by 24 mostly Democratic-led states and two small businesses seeking to block the tariffs, which took effect on February 24.

The plaintiffs contend the policy sidesteps a decision by the US Supreme Court that struck down a broad set of earlier tariffs imposed under the International Emergency Economic Powers Act.

The Trump administration has defended the tariffs as a lawful response to persistent trade imbalances, arguing that the United States’ long-standing deficit importing more goods than it exports justifies emergency measures.

The tariffs were enacted under Section 122 of the Trade Act of 1974, which permits duties of up to 15% for a limited period in cases of significant balance-of-payments deficits or to prevent a sharp depreciation of the U.S. dollar.

Plaintiffs argue that the provision is intended for short-term monetary crises and does not apply to routine trade deficits, which they say do not meet the statutory threshold.The legal dispute marks a further test of executive authority over trade policy, an area traditionally involving congressional oversight.

Trump has made tariffs a central element of his economic and foreign policy agenda in his second term, asserting broad unilateral powers to impose import duties.

The case follows a February 20 ruling by the Supreme Court that invalidated many of Trump’s earlier tariffs under the International Emergency Economic Powers Act, finding that the statute did not grant the authority he had claimed.

The current lawsuits do not challenge other tariffs imposed under more conventional legal frameworks, including duties on steel, aluminum and copper imports.

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