Cato Institute files amicus brief against Section 122 tariffs

The Cato Institute has filed an amicus brief in the US Court of Appeals for the Federal Circuit to support legal challenges against Section 122 tariffs. The brief supports cases brought by the Liberty Justice Center and a coalition of 24 states, led by Oregon, which argue that the tariffs are illegal.

The litigation follows a ruling by the US Court of International Trade that found the tariffs unlawful. The Cato Institute argues that Section 122 is inapplicable under the current flexible exchange rate regime, as the statute was designed for fixed exchange rate systems to address specific international balance-of-payments problems that no longer exist in the modern economy.