A nonprofit law firm that helped overturn President Donald Trump’s tariffs under a 1977 law filed a new challenge Monday seeking to invalidate the president’s newest tariff regime under a new law.
After the U.S. Supreme Court ruled his tariffs illegal last month, President Donald Trump vowed to restore the protectionist measures – aiming to reinstate some of the highest import duties in nearly a century – by relying on different laws.
Trump invoked Section 122 of the Trade Act of 1974 to impose a 10% global import duty. According to the administration, this provision allows the president to levy tariffs of up to 15% for a maximum of 150 days to address significant international payments issues.
The Liberty Justice Center contends that Section 122 permits temporary import restrictions only when the U.S. faces major international payment problems, such as a substantial balance-of-payments deficit or a currency crisis. The group argues that no such conditions currently exist.
No previous president has invoked Section 122 to impose tariffs.
“The Supreme Court has already ruled that the President cannot unilaterally impose worldwide tariffs,” said Jeffrey Schwab, director of litigation at the Liberty Justice Center. “Section 122 authorizes temporary tariffs for certain economic conditions that do not currently exist; it is not a general license for the President to tax the American people for reasons Congress never intended.”
Last month, the Supreme Court ruled that the International Emergency Economic Powers Act does not grant the president broad authority to impose tariffs. Following the decision, Trump has relied on alternative laws to implement a 10% global tariff on imports, with certain exceptions.
Last week, Democratic attorneys general across the U.S. sued the Trump administration to stop the implementation of a new 15% global tariff. The lawsuit said the U.S. Constitution gives Congress, not the president, the power to collect taxes, duties, imposts and excises.
The president is working to salvage trade agreements reached with foreign nations last year, following his April 2025 announcement of reciprocal tariffs on every U.S. trading partner. Tariffs have become a central focus of Trump’s second term.
Trump is also seeking to re-establish high tariff barriers through other legal avenues, including trade investigations under Section 301.
The White House did not immediately respond to a request for comment after hours on Monday.
