U.S. Trade Court Considers Legality of Trump's 10% Global Import Tax

A U.S. trade court is evaluating the legality of a 10% global import tax enacted by the Trump administration, which several states argue circumvents a previous Supreme Court ruling. The case involves 24 states and two businesses challenging the tariff's justification under the Trade Act of 1974.

The U.S. trade court on Friday will assess the legality of a 10% global import tax imposed by the Trump administration, amid claims from several states and small businesses that it sidesteps a U.S. Supreme Court ruling. The ruling had invalidated many of Trump's previous tariffs.

A coalition of 24 predominantly Democratic-led states and two small businesses filed suit against the administration to halt the tariffs, implemented on February 24. The U.S. trade court's three-judge panel is set to hear arguments at 10 a.m. ET (1400 GMT). Tariffs have been central to Trump's foreign policy in his second term, with the administration asserting the necessity of global tariffs to address the U.S. trade deficit.

The imposed tariffs were enacted under Section 122 of the Trade Act of 1974, which permits duties up to 15% for a period of 150 days during significant balance-of-payments deficits. The states argue that the Act's intent is to address short-term monetary crises, not routine trade deficits. Lawsuits filed in the U.S. Court of International Trade claim Trump's actions distort economic definitions. Trump's tariffs, announced on February 20, coincided with a Supreme Court verdict rejecting other tariffs imposed under the International Emergency Economic Powers Act.

(With inputs from agencies.)