A coalition of twenty U.S. States, including Latest York, California, and Pennsylvania, has launched a legal challenge against the recently implemented 10% tariffs imposed by President Donald Trump. The lawsuit, filed on Thursday, alleges that the new tariffs, intended to replace those previously struck down by the Supreme Court, are unlawful.
The states contend that President Trump is basing the tariffs on a 1974 law – Section 122 – without adhering to the conditions stipulated within the legislation. This, they argue, renders the tariffs illegal. The legal action underscores the ongoing tension between the federal government and individual states regarding trade policy.
“Trump continues to position in place illegal and irresponsible policies hoping they stick, but Americans pay the price daily for this,” stated California Governor Gavin Newsom in a press release. “Trump’s tariffs were rejected by the Supreme Court, so he’s inflicting more on Californians and all Americans, like a child throwing a tantrum.”
The Supreme Court invalidated a significant portion of Trump’s previous tariffs in February. In response, the President enacted the new 10% surtax, which will remain in effect for 150 days before requiring a Congressional vote for permanent implementation. He has also indicated his intention to raise the tariff to 15%.
However, the application of these tariffs is contingent upon a substantial imbalance in the current account balance – encompassing all financial transactions between countries, including trade, financial flows, and investments. The states argue that President Trump is disregarding this requirement.
“Donald Trump is once again ignoring the law and the Constitution to raise taxes on consumers and small businesses,” asserted New York Attorney General Letitia James. The legal challenge reflects growing concerns about the economic impact of the tariffs and the President’s authority to impose them without Congressional approval. The case is expected to draw significant attention from businesses and policymakers alike, as it could have far-reaching consequences for international trade and the U.S. Economy.
