Cato Institute and Ilya Somin file amicus brief opposing Section 122 tariffs

In February 2026 the Supreme Court struck down massive tariffs imposed under IEEPA, but President Trump later invoked Section 122 of the Trade Act of 1974 to levy 10% duties on most imports. Small businesses and a coalition of 24 states challenged the tariffs in the Court of International Trade, which ruled them illegal in May. The decision was appealed to the Federal Circuit, where the Cato Institute and Professor Ilya Somin submitted an amicus brief backing the lower court.

Their argument highlights that Section 122's limited conditions—such as a balance-of-payments crisis—are inapplicable under the current flexible exchange-rate regime. They further invoke the major-questions doctrine, insisting Congress must speak clearly before delegating such extensive economic authority, and warn that the tariffs amount to an unconstitutional delegation of power. The brief urges the Federal Circuit to affirm the ruling and declare the tariffs unlawful.