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By Aliss Higham
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A coalition of two dozen states have filed a lawsuit to block President Donald Trump's newly announced global tariffs, arguing that the administration cannot sidestep a recent Supreme Court ruling that struck down most of his earlier duties.
Why It Matters
The lawsuit escalated a legal and economic fight over tariffs that intensified when the Supreme Court invalidated Trump's expansive use of emergency powers to tax imports, prompting the White House to pivot to a different statute.
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The states contend that the administration's new tariffs, imposed under Section 122 of the Trade Act of 1974, exceed presidential authority and will raise costs for governments, businesses and consumers, while the White House says the move addresses balance-of-payments problems.
The outcome could affect billions of dollars in trade flows, a parallel refund process for more than $100 billion in previously collected duties and the scope of executive power over U.S. trade policy.
What To Know
Twenty-four states led by Democratic attorneys general and two Democratic governors filed suit in the New York-based U.S. Court of International Trade, alleging that the president's new global tariffs violated statutory limits and constitutional separation of powers.
The filing followed the Supreme Court's February 20 decision to strike down most of Trump's prior tariffs imposed in early 2025 under the International Emergency Economic Powers Act, with the majority opinion by Chief Justice John Roberts concluding the law did not clearly authorize peacetime tariffs.
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Hours after that ruling, Trump announced a new 10 percent global tariff, citing Section 122 of the Trade Act of 1974.
Section 122 permits duties up to 15 percent for up to 150 days to address balance-of-payments issues and has not previously been used to impose U.S. tariffs, with any extension beyond 150 days requiring congressional approval.
The states argue that Section 122 was designed for outdated monetary risks rather than trade deficits, saying the new tariffs mirror the legal defects of the invalidated measures. They are seeking an injunction and refunds of any payments made under the new duties.
Attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Oregon, Vermont, Virginia, Washington and Wisconsin filed the suit. The governors of Kentucky and Pennsylvania, which have Republican attorneys general, also joined the lawsuit.
The White House has said it will vigorously defend the action, arguing that the president is using authority Congress granted to confront serious balance-of-payments deficits and international payments problems.
Separately, the trade court is handling about 2,000 lawsuits from importers seeking refunds for upwards of $100 billion in tariffs the Supreme Court invalidated, and a judge has ordered U.S. Customs and Border Protection to begin processing refunds.
What People Are Saying
Oregon Attorney General Dan Rayfield said at a news conference: "Make no mistake about it, President Trump's signature economic policy is historically unpopular and is costing Americans, our business, and us as states hundreds of billions of dollars."
New York Attorney General Letitia James said in a news release: "Once again, President Trump is ignoring the law and the Constitution to effectively raise taxes on consumers and small businesses. After the Supreme Court rejected his first attempt to impose sweeping tariffs, the president is causing more economic chaos and expecting Americans to foot the bill. These tariffs will only drive up the cost of living, and I will continue to uphold the rule of law to protect New Yorkers."
White House spokesperson Kush Desai said in a statement: "The President is using his authority granted by Congress to address fundamental international payments problems and to deal with our country's large and serious balance-of-payments deficits. The administration will vigorously defend the President's action in court."
What Happens Next
The Court of International Trade is expected to set a schedule on the states' request for an injunction and continue to oversee refund litigation for importers seeking repayment for previously collected duties.
The administration has signaled it will raise the new global tariff rate to 15 percent and will defend Section 122 in court. Any extension beyond 150 days would require congressional approval.
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