Oregon v. Trump
Case Overview
A challenge by roughly two dozen states, led by Oregon, to the administration's Section 122 tariffs. After the Supreme Court held in February 2026 that IEEPA does not authorize tariffs, the President turned to Section 122 of the Trade Act of 1974 (19 U.S.C. § 2132) and, by Proclamation No. 11012, imposed a 10 percent tariff on most imported goods worldwide.
The plaintiff states sued in the Court of International Trade, arguing that Section 122, which by its terms allows a temporary surcharge of up to 15 percent for no more than 150 days to address balance-of-payments problems, does not authorize an open-ended worldwide tariff, and that the tariff power belongs to Congress under Article I. A three-judge panel (Judges Mark A. Barnett, Claire R. Kelly, and Timothy C. Stanceu) heard the case.
In Slip Opinion 26-47, the court granted summary judgment for the plaintiffs and entered a permanent injunction, with Judge Stanceu dissenting.
After the government appealed to the U.S. Court of Appeals for the Federal Circuit (No. 2026-1804) and the plaintiffs cross-appealed (No. 2026-1928), with the two appeals consolidated, the Federal Circuit granted a stay of the judgment pending appeal. The appeal is the live track.
The Conclusion
Where it stands: on May 7, 2026 a three-judge panel of the U.S. Court of International Trade ruled 2 to 1 for the plaintiffs (Slip Op. 26-47), granting summary judgment and a permanent injunction against the tariffs the President imposed through Proclamation 11012 under Section 122 of the Trade Act of 1974. The majority held that the proclamation exceeded the President's Section 122 authority because it did not identify the kind of 'balance-of-payments deficits' Congress had in mind when it enacted the statute. The court limited relief to the plaintiffs it found had standing as importers (the State of Washington, Burlap and Barrel, Inc., and Basic Fun, Inc.) and dismissed the remaining states' claims for lack of standing; Senior Judge Stanceu dissented. The case is now on appeal to the U.S. Court of Appeals for the Federal Circuit (Nos. 2026-1804 and 2026-1928), which granted a stay pending appeal on June 11, 2026, so the tariffs remain in effect while the appeal proceeds.
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