24 US states sue Trump administration over new global tariffs

A coalition of 24 state attorneys general launched a legal challenge Thursday against President Donald Trump's newly announced global tariff policy, alleging the administration is circumventing a recent Supreme Court decision that invalidated earlier duties. The lawsuit, led by New York Attorney General Letitia James, asks the US Court of International Trade to declare the new tariffs unlawful and order refunds for states and businesses that have already paid the penalties.

Legal battle follows Supreme Court setback

The lawsuit comes in the wake of a landmark Supreme Court ruling last month that struck down most of Trump's so-called "Liberation Day" tariffs introduced during the previous year. The high court found that the administration had improperly relied on the International Emergency Economic Powers Act (IEEPA) to justify imposing the duties, delivering one of the most significant legal setbacks of Trump's second term. Following the ruling, the administration announced a new set of tariffs under a different legal authority, invoking Section 122 of the Trade Act of 1974, and imposed a 10 percent global tariff rate on most imports with plans to increase it to 15 percent.

States challenge legal authority for tariffs

The coalition of attorneys general, many of whom participated in the earlier successful challenge, argues that the administration is attempting to sidestep the Supreme Court decision by using a law never intended for sweeping tariff measures. The lawsuit contends that Section 122 was designed to address temporary monetary imbalances under the former gold-standard system, not to manage broader trade deficits or implement permanent tariff regimes. The states also argue that the tariffs violate constitutional separation of powers by infringing on Congress's authority over trade policy and fail to comply with requirements in the 1974 law mandating uniform application of duties.

Economic uncertainty deepens

The latest legal challenge adds to mounting uncertainty surrounding the administration's aggressive trade policies. A federal court ruled Wednesday that companies which paid tariffs previously struck down by the Supreme Court could be entitled to billions of dollars in refunds, potentially exposing the government to significant financial liability. The dispute represents the continuation of a lengthy legal battle between James and Trump, following the attorney general's involvement in the previous lawsuit that eventually reached the Supreme Court. As litigation proceeds, businesses and trading partners face continued uncertainty about the durability and legality of American trade policy.