Key facts
- Twenty-five Democratic-led U.S. states have sued the Trump administration over new tariffs.
- The states argue the president exceeded his legal authority by imposing the tariffs under Section 122 of the Trade Act of 1974.
- The lawsuit claims the new tariffs are an attempt to circumvent a recent Supreme Court ruling that invalidated previous tariffs.
- The tariffs were imposed immediately after the Supreme Court struck down earlier tariffs on February 20.
- The White House maintains the president is using congressionally granted authority to address balance-of-payments deficits.
A coalition of 25 Democratic-led U.S. states has filed a lawsuit challenging President Donald Trump's administration over newly imposed tariffs, arguing that the president has exceeded his legal authority. The states contend that the 10 percent tariffs, announced on February 20, are an attempt to circumvent a recent U.S. Supreme Court ruling that invalidated previous tariffs.
The lawsuit, filed in the U.S. Court of International Trade, asserts that Trump is misapplying Section 122 of the Trade Act of 1974, which allows for tariffs up to 15 percent for up to five months to address short-term monetary emergencies. The states argue that this provision was never intended to address routine trade deficits, which occur when a nation imports more than it exports. They claim that the administration admitted in a prior lawsuit that trade deficits are conceptually distinct from balance of payments deficits.
Oregon Attorney General Dan Rayfield stated that Trump's latest tariffs are an attempted "end run" around Congress and that the policy is unpopular and costly to Americans and businesses. California Attorney General Rob Bonta expressed regret that no Republican state attorneys general joined the case, suggesting political pressures prevent them from challenging the president.
In response, White House spokesperson Kush Desai stated that the administration will vigorously defend the president's actions, asserting that Trump is using his congressionally granted authority to address international payments problems and the nation's large balance-of-payments deficits. U.S. Treasury Secretary Scott Bessent indicated that the 10 percent tariffs could rise to 15 percent later in the week.