A 2-1 majority of the U.S. Court of International Trade ruled President Donald Trump’s Section 122 tariffs unlawful, marking his second major tariff defeat in three months.
Court Finds Tariffs Exceed Authority
The court determined that Trump exceeded his presidential authority under Section 122, which permits tariffs of up to 15 percent for a maximum of 150 days to address “large and serious balance-of-payments deficits.” Judges emphasized that a trade deficit and a balance-of-payments deficit represent legally distinct concepts. Trump’s legal team attempted to equate the two, but the court warned this approach could trigger serious constitutional issues.
Background on Tariff Challenges
Trump invoked Section 122 to reinstate border taxes following the Supreme Court’s February decision to strike down his emergency tariffs under a different law. The Wall Street Journal’s editorial board, which advocates for free trade, highlighted the ruling with the phrase “rule of law 2, Trump’s tariffs 0.” The board stated, “Another tariff swing and another legal miss for President Trump.”
Limited Practical Impact
Although the decision delivers a significant legal setback, its immediate effects remain constrained. Ongoing litigation may not conclude before the tariffs’ 150-day period ends on July 24. The board noted, “Time to quit while he’s behind.” It also drew parallels between Trump’s tariff efforts and President Joe Biden’s student loan forgiveness initiative, citing concerns over executive overreach.
