US states sue to block Trump’s new global tariffs in second legal challenge in weeks
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The news: Twenty-four US states sued on Thursday US time to block President Donald Trump’s global tariffs, in the second major legal challenge to his trade agenda in weeks.
The mostly Democratic-led coalition, including New York, California and Oregon, filed the suit in the Court of International Trade after Trump replaced duties the Supreme Court struck down last month with a fresh 10% global levy under a different law.
Led by New York Attorney General Letitia James, the states contend Trump is misusing Section 122 of the Trade Act of 1974, a law never before used to impose tariffs, according to reports. They argue the section is meant to address short-term monetary emergencies, not routine trade deficits.
The states also allege the 10% Section 122 tariffs violate the Constitution’s separation-of-powers principle and the act’s requirement for consistent application across countries.
What they said: “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,” James told CNBC in a statement.
“President Trump is ignoring the law and the Constitution to effectively raise taxes on consumers and small businesses.”
The context: Trump announced the Section 122 tariff late last month, the same day the Supreme Court struck down his previous global tariffs imposed under the International Emergency Economic Powers Act. The 10% rate took effect February 24.
The new lawsuit also comes after US Treasury Secretary Scott Bessent yesterday said those rates would likely be officially raised to 15% this week. Also on Wednesday, a federal court ordered US customs to begin processing refunds on tariffs already paid under the now-overturned IEEPA authority.
