The Globe and Mail reports in its Wednesday edition that days after U.S. President Trump authorized new global tariffs to replace those struck down by the Supreme Court, lawyers say the White House is again using questionable legal grounds. The Globe's Nathan VanderKlippe writes that they expect new lawsuits, renewing uncertainty over U.S. economic policy and its impact on global trading systems. The Trump administration has turned to Section 122 of the Trade Act of 1974 for its new round of 10-per-cent tariffs, which took effect Tuesday. Section 122, however, is a legal tool designed to address international payments problems "of a kind that can only really exist under a fixed-exchange rate regime," says George Mason University law professor Ilya Somin. Prof. Somin was co-counsel on one of the cases against the previous iteration of global tariffs, filed on behalf of several U.S. businesses. Such a regime does not currently exist, and Prof. Somin expects the first legal challenges to the new set of tariffs to arrive within weeks. He says: "Section 122 tariffs are vulnerable on a number of grounds. And I think there's at least a good chance they would be struck down -- I certainly hope they would be."
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