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March 9, 2026court rulingtrade policyconstitutional lawimport dutiestrade policyjudicial reviewseparation of powers

Liberty Justice Center files Section 122 tariff challenge at Court of International Trade

The Liberty Justice Center filed Burlap and Barrel, Inc. v. Trump at the U.S. Court of International Trade on behalf of two small business importers: Burlap & Barrel, a New York-based spice retailer, and Basic Fun!, a Florida-based toy company. The lawsuit argued that the Trump administration misread Section 122 by treating a persistent goods trade deficit as a balance-of-payments deficit, giving the president effectively unlimited tariff authority that Congress never intended. The case was consolidated with a challenge brought by 24 states, including Oregon and Washington.