Supreme Court Ruling Spurs State Lawsuit Against Trump

24 US States Sue Trump Administration Over New 10% Global Tariffs​

A coalition of 24 US states has filed a lawsuit against President Donald Trump's administration, challenging the legality of newly imposed 10% global tariffs on imports. The case marks the first major legal challenge to the policy after the US Supreme Court recently struck down a significant portion of the administration’s earlier tariff measures.

The lawsuit was filed in the US Court of International Trade in New York, with states arguing that the administration is attempting to bypass the Supreme Court’s February ruling by invoking a different legal provision to justify the tariffs.

States Claim Tariffs Circumvent Supreme Court Ruling​

The states, led by Democratic-led administrations including New York, California, and Oregon, contend that the tariffs announced by Trump immediately after the February 20 Supreme Court decision are also unlawful.

According to the lawsuit, the administration imposed the duties under Section 122 of the Trade Act of 1974, which allows the president to impose temporary tariffs for up to 150 days to address serious balance-of-payments issues. The states argue that this provision was designed to deal with short-term monetary emergencies, not ongoing trade deficits that arise when a country imports more goods than it exports.

Oregon Attorney General Criticizes Policy​

Speaking during a press conference, Oregon Attorney General Dan Rayfield accused the administration of attempting to bypass Congress.

Rayfield said the new tariffs were an effort to “circumvent” the constitutional requirement that trade policy be shaped with congressional involvement.

He also argued that the tariff policy is harming businesses and state economies, stating that the approach is costing Americans and state governments hundreds of billions of dollars.

White House Defends Tariff Measures​

The White House rejected the claims and said it would defend the policy in court.

White House spokesperson Kush Desai stated that the president is exercising authority granted by Congress to address what the administration views as serious international payment imbalances and the country’s large balance-of-payments deficits.

The executive order issued on February 20 introduced a 10% tariff on imports, but US Treasury Secretary Scott Besent indicated that the rate could increase to 15% later this week.

Tariffs Remain Central to Trump’s Economic Strategy​

Tariffs have become a central element of Trump’s foreign and economic policy during his second term, with the administration claiming broad authority to impose them without congressional approval.

However, the Supreme Court’s February ruling significantly curtailed that approach. The court struck down a large set of tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA), concluding that the law did not grant the president the authority claimed by the administration.

Following that setback, Trump announced the new tariffs under Section 122 of the Trade Act of 1974, a provision that had never previously been used to impose tariffs in the United States.

Limits of Section 122 Authority​

Under Section 122, the president may impose tariffs of up to 15% for a maximum period of 150 days to address serious balance-of-payments concerns. The provision does not require formal investigations or extensive procedural steps.

However, if the tariffs are to continue beyond the 150-day period, Congress must approve an extension.

The states argue that the provision was intended to address historical monetary risks that existed when foreign governments could exchange US dollars for American gold reserves. They claim the administration is misapplying the law to address trade deficits rather than genuine balance-of-payments crises.

Broader Legal Battles Over Tariffs Continue​

The lawsuit is part of a broader legal battle surrounding the administration’s trade policies.

The Court of International Trade is already reviewing around 2,000 lawsuits from businesses seeking refunds for more than $130 billion in tariff payments collected under the now-invalidated IEEPA tariffs.

In a related development, the court recently ordered US Customs to begin processing tariff refunds for importers affected by the earlier ruling.

The 24 states involved in the new lawsuit are seeking a court order to block the tariffs and require refunds for any payments already made under the Section 122 authority.