After the Supreme Court struck down IEEPA tariffs in February, the Trump administration quickly pivoted to Section 122 of the Trade Act of 1974, imposing tariffs of 10% on nearly every country.

This week, a coalition of 24 states filed suit in the U.S. Court of International Trade to block them. The states argue Section 122 was never intended for broad trade policy, has never before been invoked, and that the administration’s country-specific exemptions violate the law’s nondiscrimination requirement.

The administration says it will vigorously defend the tariffs. Notably, legal experts give the states an uphill battle as the same court that struck down IEEPA tariffs had previously signaled Section 122 was fair game.

We are monitoring closely and will keep you updated as this develops.