Trump’s 10% import tariff faces its latest legal challenge as states and small businesses return to court, arguing the administration overstepped its authority. The Trade Act of 1974’s Section 122, which allows temporary tariffs for balance-of-payments crises, is under scrutiny. Critics claim the tariff, imposed after the Supreme Court invalidated earlier duties, lacks legal basis.

The $166 billion collected in disputed tariffs could be refunded if the court rules against the administration. The case hinges on whether the U.S. trade deficit qualifies as a “balance-of-payments problem,” a legal standard not met since the 1970s.