WHAT HAPPENED? The U.S. Court of International Trade will hear oral arguments today in New York City in State of Oregon, et al. v. Trump, a lawsuit brought by 24 states challenging the administration’s use of Section 122 of the Trade Act of 1974 to impose a new round of global tariffs. The action follows the Supreme Court’s February 20 ruling that the International Emergency Economic Powers Act does not authorize the president to unilaterally set tariffs — prompting the administration to pursue tariffs under a different legal authority.
WHY IT MATTERS: The plaintiff states argue the tariffs violate the Constitution’s separation of powers and do not meet Section 122’s statutory requirements. The effective U.S. tariff rate now stands at roughly 8 percent — more than double the 3 percent rate in place before January 2025. States estimate they face at least $748 million per year in additional costs.
NEXT STEPS: The three-judge panel will decide whether to block the tariffs while the case proceeds. Any ruling is expected to be appealed, potentially returning the matter to the Supreme Court.
