A coalition of over 20 states has launched a legal challenge against President Donald Trump’s newly imposed global tariffs, arguing they represent an overreach of executive power and a potential economic burden on consumers and businesses. The lawsuit, filed Thursday, seeks to invalidate the president’s 10 percent tax on imports, a move that follows a recent defeat at the Supreme Court.
The legal action, spearheaded by New York Attorney General Letitia James, contends that the power to impose tariffs rests solely with Congress, as outlined in the Constitution. This latest attempt to enact sweeping tariffs comes after the Supreme Court rejected a previous effort by the Trump administration to utilize the International Emergency Economic Powers Act (IEEPA) for similar measures. The current tariffs are being implemented under Section 122 of the Trade Act of 1974, a law the states argue is being misused.
Constitutional Challenge at the Heart of the Lawsuit
Attorney General James and the coalition assert that the president’s actions violate the Constitution’s separation of powers principle. According to the lawsuit, Article I of the Constitution explicitly grants Congress the authority to tax and impose tariffs, a power the president cannot unilaterally exercise. “Once again, President Trump is ignoring the law and the Constitution to effectively raise taxes on consumers and modest businesses,” James stated in a press release.
California Attorney General Rob Bonta echoed these concerns, stating that the president is attempting to circumvent the Supreme Court’s previous ruling by employing an “obscure law” to justify the tariffs. He emphasized that American consumers and business owners have consistently expressed opposition to tariffs.
Timeline of Events Leading to the Legal Challenge
The imposition of these tariffs follows a series of escalating trade tensions. In March 2025, the United States imposed 25% tariffs on goods from Canada and Mexico, initiating a trade war with its closest neighbors and allies. This action was preceded by a Supreme Court ruling against the Trump administration’s earlier use of IEEPA to impose tariffs, a decision that prompted the current attempt to utilize Section 122 of the Trade Act of 1974.
The states involved in the lawsuit are seeking a court order declaring the tariffs unlawful and demanding refunds for tariff costs already paid. The coalition includes the attorneys general from states like Oregon, Arizona, California, and New York, as well as the governors of Kentucky and Pennsylvania.
Potential Economic Impact of the Tariffs
The new tariffs, a flat 10 percent tax on all imports, are expected to impact a wide range of goods, potentially increasing costs for consumers and businesses across various sectors. Images circulating show the potential impact on everyday goods, such as avocados imported from Mexico and automobiles. The tariffs are already drawing criticism from industry groups who fear they will disrupt supply chains and hinder economic growth.
Cars drive by a Mercedes-Benz dealership on the Bedford Automile in Bedford, Ohio, Friday, Feb. 20, 2026. (AP Photo/Sue Ogrocki)
Avocados imported from Mexico are for sale in a supermarket in Miami as the United States imposed 25% tariffs on goods from Canada and Mexico, starting a trade war with its closest neighbors and allies Wednesday, Mar. 5, 2025. (AP Photo/Lynne Sladky, file)
Ongoing Legal Battles and Future Implications
This lawsuit represents the latest chapter in a series of legal battles between state attorneys general and the Trump administration over trade policy. The outcome of this case could have significant implications for the future of U.S. Trade relations and the balance of power between the executive and legislative branches. The states are arguing that allowing the president to unilaterally impose tariffs would set a dangerous precedent, undermining Congress’s constitutional authority.
The case is expected to move quickly through the courts, with arguments likely to focus on the interpretation of Section 122 of the Trade Act of 1974 and the constitutional limits on presidential power. The Biden administration has not yet commented on the lawsuit, but its position could influence the proceedings.
As the legal challenge unfolds, businesses and consumers will be closely watching for any potential impact on prices and trade flows. The resolution of this case will likely shape the future of U.S. Trade policy for years to come.
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