US trade court hears challenge to Trump's global tariffs

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A three-judge panel at the US Court of International Trade hears arguments Wednesday in a case challenging President Donald Trump's use of Section 301 to impose tariffs on goods from 80 countries. The Liberty Justice Center argues the administration improperly used the 1970s trade law to preserve a predetermined global tariff policy. The case could reach the Supreme Court, extending the legal battle for months.
Key Facts
- Since late July, goods from 80 countries, including China, India and Japan, have faced tariff rates ranging from 10% to 12.5%.
- The Supreme Court earlier ruled Trump overstepped his authority on a separate 10% near-blanket duty, invalidating the tariffs and triggering $168 billion in refunds for importers.
- The Liberty Justice Center, which won the landmark Supreme Court tariff case, filed the complaint arguing the administration is improperly using Section 301.
- Trump has also used a Great Depression-era trade law to impose 50% duties on $20 billion worth of goods from Canada and issued widespread import bans from there.
The Legal Challenge
A three-judge panel at the US Court of International Trade is set to hear arguments Wednesday in a case that could determine whether the president can use a 1970s trade law to impose tariffs on nearly everything the United States imports. The complaint, filed by the Liberty Justice Center, argues that the administration is moving to preserve a predetermined global tariff policy, an improper use of the trade law commonly referred to as Section 301. The Liberty Justice Center is a libertarian public-interest law firm that successfully won the landmark Supreme Court tariff case. While Wednesday's arguments may offer clues about how the judges view the case, a ruling could still take weeks, if not months. Either side could then appeal the decision to the US Court of Appeals for the Federal Circuit, which could also decide whether to pause enforcement of the tariffs while the case proceeds.
Tariff Background
Since late July, goods from 80 countries, including China, India and Japan, have faced tariff rates ranging from 10% to 12.5%. The administration imposed the duties after determining that those countries had allegedly failed to address the use of forced labor in producing goods shipped to the US. The US Trade Representative recommended the tariffs as a remedy, with higher rates applying to countries deemed the 'worst offenders.' The rollout of these tariffs coincided with the lapse of a separate 10% near-blanket duty Trump had imposed earlier in the year under a different legal authority. The Supreme Court later ruled that Trump had overstepped his authority, which immediately invalidated the tariffs and triggered $168 billion worth of refunds for importers.
Broader Trade Actions
Administration officials told reporters previously that the timing was to 'avoid complexity' that would come from layering the new levies on top of the then-10% duties. The fight could eventually reach the Supreme Court, extending the legal battle for several months more. By the time it concludes, Trump may have already enacted a slew of new duties, with several pending Section 301 investigations widely expected to lead to higher border taxes. Trump has also tapped into a Great Depression-era trade law to impose 50% duties on $20 billion worth of goods from Canada and issued widespread import bans from there.