Trump's latest tariffs face a new test in federal court
NBC News • • general
Key Points:
- President Donald Trump’s global import tariffs, central to his economic policy, face renewed legal challenges at the U.S. Court of International Trade in New York.
- The Supreme Court struck down Trump’s initial tariffs under the 1977 International Emergency Economic Powers Act (IEEPA), ruling it did not authorize tariffs for national emergencies like trade deficits.
- Trump then imposed temporary 10% tariffs under Section 122 of the Trade Act of 1974, which allows up to 15% tariffs for 150 days without congressional approval; these tariffs are set to expire on July 24.
- Legal debate centers on whether Section 122’s focus on “fundamental international payments problems” applies to trade deficits, with critics arguing the provision is outdated since the U.S. dollar is no longer tied to gold.
- The Justice Department previously argued Section 122 was not suitable for addressing trade deficits, while the trade court noted Trump could have used Section 122 instead of IEEPA for his tariffs.
