The Trump administration has moved swiftly to challenge a fresh judicial blow to its tariff policy, filing an appeal after a federal trade court ruled that a blanket 10% import duty introduced earlier this year overstepped the powers granted under U.S. trade law.
The dispute centers on Section 122 of the Trade Act of 1974 — a rarely used provision the administration leaned on after the U.S. Supreme Court earlier dismantled a separate round of tariffs imposed under emergency economic powers legislation.
In Thursday’s split ruling, the U.S. Court of International Trade concluded that Section 122 was never designed to tackle long-running trade imbalances arising from the United States importing more than it exports. Still, the judgment offered only limited relief, applying specifically to the three plaintiffs who brought the challenge: two smaller import businesses and the state of Washington.
Though the tariffs in question are scheduled to lapse in roughly two months, the decision carries larger political and economic weight. It lands at a delicate moment for Trump’s trade agenda, just days before planned discussions with Chinese President Xi Jinping in Beijing amid renewed tensions over global commerce.
The ruling also threatens to open another lengthy courtroom battle over potential tariff reimbursements worth billions of dollars. That uncertainty follows the Supreme Court’s earlier decision in February, which stripped the administration of authority to maintain sweeping import duties enacted through the International Emergency Economic Powers Act.
Reacting sharply to the latest defeat, Trump criticized the ruling from the bench, accusing “radical left judges” of undermining his trade policies. U.S. Trade Representative Jamieson Greer, meanwhile, projected confidence that the administration would ultimately reverse the setback on appeal, even as previous tariff strategies have already failed judicial scrutiny.
After the Supreme Court invalidated the earlier emergency-based tariffs, the administration pivoted to Section 122 as a stopgap measure, imposing a universal 10% levy on imports. Those duties are set to expire on July 24 unless Congress intervenes to extend them.
At the same time, the White House is continuing to build a broader tariff framework under Section 301 of the same 1974 trade law — a more durable legal tool traditionally used against unfair foreign trade practices. Three ongoing Section 301 investigations are expected to conclude in July and could shape the next phase of Trump’s trade offensive.
