Feature, Freight News, Logistics

CIT Weighs Legal Challenge to Trump’s Tariffs

[ April 17, 2026   //   Gary Burrows ]

President Donald Trump’s use of broad-based tariffs is facing renewed legal scrutiny as the U.S. Court of International Trade considers a challenge to his latest trade measures.

The New York-based court heard oral arguments April 10 over tariffs imposed under Section 122 of the Trade Act of 1974, a provision the administration turned to after the Supreme Court in February struck down an earlier, more expansive tariff program.

In that earlier case, the court ruled that the International Emergency Economic Powers Act does not authorize the president to impose tariffs to address national emergencies, rejecting Trump’s use of the law to justify sweeping global import taxes tied to the U.S. trade deficit.

Following the decision, the administration moved to Section 122, which allows the president to impose tariffs of up to 15 percent for 150 days to address what the statute describes as “fundamental international payments problems.” Trump announced a 10 percent tariff under the provision, with the option to increase it to 15 percent. The measure is scheduled to expire in late July unless extended with congressional approval.

At issue in the current case is whether Section 122 can be used to address trade imbalances, rather than the currency and balance-of-payments concerns the law was originally designed to address during the Bretton Woods era.

Legal arguments have highlighted conflicting interpretations. In prior filings, the Justice Department said Section 122 did not clearly apply to trade deficits, describing them as distinct from payments problems. However, the trade court previously suggested the provision could serve as an alternative authority after rejecting the IEEPA-based tariffs.

The case underscores ongoing uncertainty surrounding the administration’s trade strategy, which has relied heavily on tariffs as a central economic policy tool.

The outcome could have significant implications for global trade flows and supply chains, particularly as businesses contend with shifting tariff regimes and legal challenges that may affect their durability.

Tags: Trade Act of 1974, U..S. Court of International Trade