US Federal Court Hears New Case Against Trump Tariffs

US Federal Court Hears New Case Against Trump Tariffs

A three-judge panel of the US Court of International Trade is hearing oral arguments in a case to overturn the temporary tariffs imposed by former US President Donald Trump after the Supreme Court struck down his earlier tariffs.

The case, brought by 24 mostly Democratic-led states and two small businesses, argues that Trump's 10 percent global import tax sidesteps the Supreme Court ruling that invalidated most of his previous tariffs.

The plaintiffs claim that the tariffs were based on archaic authority meant to protect the US dollar from sudden depreciation in the 1970s, and that Trump cannot repurpose it to address routine trade deficits.

Trump's administration has defended the tariffs as a legal and appropriate response to a persistent trade deficit, but the states and small businesses argue that the Trade Act's tariff authority is meant only to address short-term monetary emergencies.

The case is a significant challenge to Trump's economic policy, which has made tariffs a central pillar of his foreign policy.

The US Court of International Trade is expected to make a ruling in the coming weeks.