Trade Court Battles Over Trump's Controversial Global Import Tariff

A U.S. trade court reviews the legality of Trump's 10% global import tax, challenged by 24 states and small businesses. Oregon argues the tax misuses 1970s-era authority intended for emergency balance-of-payments deficits. The administration defends it as a legal tool for addressing trade imbalances.

The U.S. Court of International Trade is scrutinizing the legality of a contentious 10% global import tax implemented by the Trump administration, which has faced legal challenges from 24 states and two small businesses. Opponents argue the tax circumvents a U.S. Supreme Court ruling that invalidated prior tariffs.

During the hearing, Oregon's attorney Brian Marshall contended that the administration's reliance on a 1970s-era authority is misplaced. This authority was originally designed to combat significant 'balance of payments deficits,' rather than routine trade imbalances. The administration, however, views the tax as a valid response to persistent trade deficits.

Under Section 122 of the Trade Act of 1974, the tariffs, which can reach 15% for up to 150 days, aim to prevent the depreciation of the dollar. Critics argue the measure oversteps its original purpose, challenging the administration's interpretation of what's needed for economic stability.

(With inputs from agencies.)