Story perspectives

U.S. Court Reviews Trump's Tariffs Amid Deficit Debate

4/13/2026

Summary

Trump's Tariffs Under Review

The U.S. Court of International Trade is reviewing U.S. President Donald Trump’s 10% tariffs under Section 122 of the Trade Act of 1974.
The law allows temporary tariffs to address "large and serious" balance-of-payments deficits.
During a three-hour hearing, judges questioned the law’s applicability and whether the deficit qualifies as a balance-of-payments crisis.
The tariffs are set to expire in July unless Congress intervenes.

Summary

Trump's Tariff Consideration

U.S. President Donald Trump is considering a 50% tariff on weapons suppliers to Iran under the International Emergency Economic Powers Act.
Hassett says the plan fits the president's authority during conflict.
Greer questions the approach.
Greer notes IEEPA may suit prohibitions more than tariffs.
A Supreme Court ruling against previous tariffs creates legal challenges and a $175 billion refund backlog.

History

Historical Context

The Trade Act of 1974 empowered President Gerald Ford to impose temporary tariffs to address balance-of-payments deficits, significantly affecting trade relations with nations like Japan and the European Economic Community. This act laid the groundwork for ongoing trade authority debates, as seen in President Trump's proposed tariffs on Iran, which could lead to substantial legal disputes and financial implications, including a $175 billion refund backlog.

1 of 3

Trump's Tariffs Under Review

The U.S. Court of International Trade is reviewing U.S. President Donald Trump’s 10% tariffs under Section 122 of the Trade Act of 1974.
The law allows temporary tariffs to address "large and serious" balance-of-payments deficits.
During a three-hour hearing, judges questioned the law’s applicability and whether the deficit qualifies as a balance-of-payments crisis.
The tariffs are set to expire in July unless Congress intervenes.

1 / 3