24 US States Sue Trump Admin Over New Tariffs Imposed After SC Setback

A group of 24 US states has filed a lawsuit against the administration of Donald Trump, marking the first legal challenge to his newly imposed 10 per cent global tariffs.

 

The Democratic-led states allege that the president cannot sidestep a recent ruling by the Supreme Court of the United States that invalidated most of his earlier tariffs on imported goods by invoking a different legal authority.

 

The states — including New York, California and Oregon — argue that the new tariffs, announced immediately after the court’s February 20 decision, are also unlawful.

 

They were imposed for 150 days under the Trade Act of 1974, a law intended to address short-term monetary emergencies rather than routine trade deficits that arise when a wealthy country such as the United States imports more than it exports.

 

The lawsuit was filed with the United States Court of International Trade in New York.

 

During a press conference, Dan Rayfield, the Attorney General of Oregon, said the latest tariffs were an attempt to bypass the legislative process.

 

“Make no mistake about it — President Trump’s signature economic policy is historically unpopular and is costing Americans, businesses and states hundreds of billions of dollars,” Rayfield said. “It cannot continue simply because a few of Trump’s lawyers have found a way to twist words and craft a legal argument.”

 

A spokesperson for the White House, Kush Desai, said the administration would vigorously defend the president’s action in court.

 

“The president is using authority granted by Congress to address fundamental international payments problems and to deal with our country’s large and serious balance-of-payments deficits,” Desai said.

 

Trump’s February 20 executive order imposed a 10 per cent tariff on imports. However, Scott Bessent, the US Treasury Secretary, said on Wednesday that the rate could rise to 15 per cent later this week.

 

Tariffs have become a central pillar of Trump’s foreign policy during his second term, with the president asserting sweeping authority to impose duties without congressional approval.

 

But the Supreme Court dealt him a significant setback on February 20 when it struck down a large portion of tariffs imposed under the International Emergency Economic Powers Act. The court ruled that the law did not grant the president the authority he had claimed.

 

Trump responded by criticising the justices who ruled against him and announcing new duties under Section 122 of the Trade Act of 1974 — a provision that, like the emergency powers law, had never previously been used to impose tariffs in the United States.

 

The president has also imposed tariffs on imports such as automobiles, steel and aluminium under more traditional legal authority, measures considered less vulnerable to legal challenges.

 

Section 122 allows the president to impose duties of up to 15 per cent for as long as 150 days on any country to address “large and serious” balance-of-payments problems. It does not require investigations or other procedural steps, though Congress must approve any extension beyond the 150-day period.

 

According to the states, the balance-of-payments provisions in the Trade Act were designed to address “archaic” monetary risks dating back to a period when foreign governments could exchange US dollars for gold held by the United States.

 

They argue that Trump has misapplied the provision to tackle trade deficits — situations in which a country imports more than it exports — rather than genuine balance-of-payments crises.

 

The lawsuit was brought by 22 states with Democratic attorneys general, along with two others — Pennsylvania and Kentucky — which have Democratic governors but Republican attorneys general.

 

The states are asking the court to block the tariffs and order refunds for any duties already collected under Section 122.

 

Meanwhile, the Court of International Trade is also dealing with around 2,000 lawsuits from businesses seeking refunds totalling more than $130 billion in tariff payments made under the emergency powers law before the Supreme Court’s February ruling. On Wednesday, the court ordered US Customs and Border Protection to begin processing those refunds.

 

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