States Join Lawsuit to Halt Trump’s New Tariffs

A coalition of twenty‑four states, most led by Democrats, plans to file a lawsuit against the Trump administration. They argue that the president’s latest 10% global tariff is illegal because it was imposed right after a Supreme Court decision that invalidated many of his earlier tariffs. The court said the president lacked the authority he claimed under the International Emergency Economic Powers Act. The states—such as New York, California and Oregon—contend that the new tariffs were issued under the Trade Act of 1974. That law is meant for short‑term monetary crises, not to fix the country’s regular trade deficits. The Act allows tariffs only when the United States faces a balance‑of‑payments problem, a situation that has not occurred in recent decades. Trump announced the tariffs on February 20, just days after the Supreme Court ruling. Treasury Secretary Scott Bessent later said the rates might rise to 15%. The president has made tariffs a key part of his foreign policy, claiming he can set them without Congress’s input. However, the Court’s decision forced him to rely on a different section of the Trade Act, which has never been used for this purpose before.The lawsuit will be filed in the U. S. Court of International Trade, located in New York City. The states seek a court order that would stop the new tariffs and require refunds for any payments already collected under Section 122 of the Trade Act. They also point out that the same law was designed to protect against sudden devaluation of the dollar, not to address a trade imbalance where imports exceed exports. Meanwhile, the court is already handling around 2, 000 lawsuits from businesses that want refunds for over $130 billion in tariffs paid before the Supreme Court’s decision. Customs officials have been ordered to start processing those refunds. This legal challenge marks the first time a group of states has taken on the president’s tariff policy in court. The outcome could shape how future trade measures are justified and implemented.