24 States File Tariff Refund Lawsuit Against Trump Administration

Key Details A coalition of 24 states filed suit Thursday in U.S. Court of International Trade challenging tariffs imposed under Section 122 of the Trade Act of 1974. The lawsuit joins growing legal action from companies like Nintendo and Costco seeking refund relief. Why It Matters The case outcome could force billions in tariff refunds and reshape sourcing costs for retailers, manufacturers, and logistics providers nationwide. Truck drivers and freight companies face direct impacts through shifts in import volumes and shipper demand. Constitutional Challenge State attorneys general argue the administration violated the Constitution by imposing sweeping tariffs without congressional approval. They contend Section 122 was intended only for narrow balance-of-payments crises tied to currency instability, not current conditions. Tariff Timeline The administration imposed a 10% tariff on most imports starting February 24, with signals of increasing rates to 15%. The Supreme Court previously ruled against similar duties imposed under the International Emergency Economic Powers Act (IEEPA). Who's Involved Plaintiffs include Arizona, California, Colorado, Connecticut, Delaware, Illinois, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Oregon, Rhode Island, Vermont, Virginia, and Washington.