Trump’s Tariffs Under Challenge Again In Escalating Legal Battle

Donald Trump’s efforts to reshape U.S. trade policy are again facing legal pushback. After the Supreme Court struck down his sweeping “Liberty Day” tariffs, his administration quickly introduced a new set of duties—only for those measures to be challenged almost immediately in court.

Adopting a different legal approach, Trump introduced a blanket 10% tariff last month under Section 122 of the Trade Act of 1974. This followed the Court’s rejection of his earlier attempt to rely on emergency powers, which it said could not support such wide-ranging tariffs. Section 122, a provision rarely used in recent decades, allows temporary action to address balance-of-payments issues. Its use in this context, however, has raised serious legal questions.

The policy is now being contested in two cases before the Court of International Trade, with hearings expected in April. Opponents argue that the administration has once again overstepped its authority, claiming that Section 122 does not grant powers of this scope. They warn that stretching the law in this way could weaken constitutional limits and create uncertainty in global markets.

The administration, for its part, is preparing to defend the tariffs. Even if they are upheld, relying on less commonly used legal tools could make future trade actions more complicated. Continued legal challenges may also delay implementation and reduce the government’s ability to act quickly in future disputes.

Meanwhile, the fallout from the earlier, invalidated tariffs is still playing out. In a separate decision, the Court of International Trade ordered US Customs and Border Protection to refund duties collected under the International Emergency Economic Powers Act. Although the ruling directly applies to one company, the judge indicated it should extend to all affected importers.

The scale of those refunds is significant. Officials estimate that around 330,000 importers and more than 53 million import entries were affected. Customs authorities have acknowledged they currently lack the capacity to process refunds at that scale, though they believe it could be done within roughly 45 days if system upgrades are made.

Taken together, these developments underscore the growing legal complexity surrounding Trump’s trade agenda. As courts continue to scrutinize these policies, legal constraints are becoming just as influential as economic goals in shaping the administration’s approach.

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