States sue Trump administration over new 'unlawful' global tariffs

Twenty-four US states, led by New York, California, Oregon and Arizona and represented by Democratic officials, sued the Trump administration in the US Court of International Trade on Thursday to block new global tariffs, arguing the 10% duties imposed under Section 122 of the Trade Act of 1974 are unconstitutional and illegal because Congress, not the president, holds the power to impose sweeping tariffs on imports. The lawsuit comes after the US Supreme Court ruled last month that many of the duties President Donald Trump had announced previously were illegal, prompting the White House to swiftly implement the new tariffs under a different legal provision. The state officials contend that the administration's use of Section 122 is improper, as the law was not intended to address trade imbalances but rather specific international payment problems. Arizona Attorney General Kris Mayes dismissed the administration's claim that this new tariff represents a fix, stating 'It is the same illegal power-grab under a different statute than he used the last time.' The lawsuit mirrors a previous legal challenge brought by 12 state attorneys general over tariffs Trump introduced under the International Emergency Economic Powers Act, which had reached rates exceeding 40% for goods from some countries and triggered extensive trade negotiations. In response, White House spokesman Kush Desai defended the tariffs as legitimate, asserting that President Trump was 'using his authority granted by Congress to address fundamental international payments problems and to deal with our country's large and serious balance-of-payments deficits.' Meanwhile, US Treasury Secretary Scott Bessent indicated that the administration plans to potentially raise the tariff rate to the maximum 15% allowed under Section 122. The states have requested the court to block implementation of the tariffs and are seeking refunds for the levies already collected, with California Attorney General Rob Bonta suggesting legal relief could come 'very soon' for businesses and consumers affected by the trade measures.