Overview
- The U.S. Court of International Trade is holding an expedited hearing on a bid to halt the 10% tariff, with the court providing an audio livestream for the public.
- A coalition of Democrat-led states and small businesses argues Section 122 cannot apply because the United States does not face a 'fundamental international payments problem' under today’s floating exchange rates.
- The Justice Department defends the action as lawful under Section 122, a 1974 law that permits temporary surcharges of up to 15% for 150 days.
- Importers say they are paying the new charges up front at ports while still waiting for refunds from tariffs a court already rejected, which is straining cash and forcing choices on prices, shipments, and hiring.
- The fight follows the Supreme Court’s February ruling against using emergency powers for tariffs, and new amicus briefs urge the court to apply the major questions doctrine in a case that could move to higher appeals.