24 states sue Trump administration over tariffs imposed after Supreme Court ruling
The Trump administration is facing legal challenges from two dozen states over the imposition of new global tariffs. These tariffs, ranging from 10% to 15%, were introduced under Section 122 of the Trade Act of 1974, following the Supreme Court’s decision to strike down emergency import duties imposed by President Trump last year.
The states argue that the tariffs violate the Constitution’s separation of powers principle, as the President exceeded his authority in implementing them. The Supreme Court’s ruling last month confirmed that Mr. Trump did not have the right to impose tariffs under the International Emergency Economic Powers Act (IEEPA), leading to the current legal battle over Section 122 tariffs.
The Trump administration defends the tariffs as a means to restore fairness to global trade, spur investment in the U.S., and generate government revenue. However, there is debate over who ultimately bears the cost of these tariffs, with some studies suggesting that U.S. consumers and businesses are the ones most affected.
Section 122 of the Trade Act of 1974, which allows for temporary import surcharges to address balance-of-payments deficits, is at the center of the legal dispute. While the Trump administration’s use of this statute is being questioned, some legal analysts believe that the President may have a stronger case this time around.
The lawsuit filed by the states seeks to declare the Section 122 tariffs illegal and to refund states for any costs incurred while the tariffs were in effect. This legal challenge adds to the mounting pushback against the Trump administration’s tariff policies, following recent court rulings in favor of businesses seeking refunds for IEEPA levies.
Trade experts estimate that the U.S. government could owe as much as $175 billion to businesses that paid IEEPA tariffs, further highlighting the financial implications of the ongoing legal battles over tariff policies. The outcome of these legal challenges will have significant implications for trade relations and economic stability both domestically and globally.
