Oregon AG Challenges Trump Tariffs in Court of International Trade
Summary
Oregon Attorney General Dan Rayfield led arguments at the Court of International Trade in New York, challenging tariffs imposed under Section 122 of the Trade Act of 1974. Oregon is leading a coalition of 24 states in the lawsuit against the Trump administration. The states argue that Section 122, which authorizes temporary tariffs up to 15 percent for 150 days to address balance-of-payments crises, does not authorize the current tariffs because those economic conditions do not exist today.
What changed
Oregon AG Dan Rayfield, leading a coalition of 24 states, argued at the Court of International Trade that the Trump administration's tariffs exceed presidential authority under Section 122 of the Trade Act of 1974. Section 122 authorizes temporary, non-discriminatory tariffs up to 15 percent for 150 days only when addressing fundamental international payments problems such as large balance-of-payments deficits—a condition the states argue does not currently exist in the U.S.\n\nImporters, exporters, and businesses that have faced increased costs from tariffs should monitor this case closely. A ruling in favor of the states could invalidate current tariff measures and establish precedent limiting presidential trade authority under Section 122. The case may also affect future trade policy disputes regarding the separation of powers between Congress and the executive branch in setting tariff rates.
What to do next
- Monitor ongoing court proceedings
- Review tariff implications for import/export operations
- Assess potential refunds for tariffs paid
Archived snapshot
Apr 11, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
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Attorney General Rayfield Issues Statement as Oregon Leads Federal Court Fight Over Trump’s Latest Tariffs
April 10, 2026 • Posted in Homepage, Media Release
AG Rayfield argues Trump’s new tariffs go beyond what Congress authorized; asks court to block them
Oregon Attorney General Dan Rayfield issued the following statement after today’s hearing at the Court of International Trade in New York City, challenging tariffs imposed under Section 122 of the Trade Act of 1974.
“Oregon families are still paying more for groceries, clothes, and everyday basics. Now the president is doubling down on his failed economic agenda – making working families foot the bill while he rewrites the rules on a whim.
“What we argued today was straightforward – Congress sets tariffs, not the president, and this law doesn’t give him the authority he’s claiming. The focus should be on getting Oregonians and all Americans refunds after they had to foot the bill for Trump’s tariffs.”
BACKGROUND
Section 122 of the Trade Act of 1974 authorizes the President to impose temporary, non-discriminatory tariffs of up to 15 percent for 150 days to address “fundamental international payments problems,” such as large balance-of-payments deficits. Enacted in the aftermath of the 1971 “Nixon Shock,” the law serves as a narrow statutory check on executive power and requires Congressional approval to extend measures beyond 150 days.
Section 122 has never been used before and does not give the President the power to impose tariffs unless specific economic conditions are met. Oregon is leading a coalition of 24 states in the lawsuit against the Trump administration.
The States are arguing that the law does not authorize the tariffs because the conditions the statute was designed to address simply do not exist today.
A balance-of-payments crisis occurs when a country can no longer obtain sufficient financing through global capital markets or acquire the foreign currency needed to pay for critical imports or service external debt. None of those conditions are present in the United States today. The U.S. maintains a $30 trillion Treasury market with approximately $1.2 trillion in daily trading volume – the foundation of the global financial system.
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