Multi-State Coalition Sues Over Trump's New Import Tariff Strategy

Key Details Attorneys general from New York, California, and Oregon announced plans to file a lawsuit in the Court of International Trade challenging President Trump's new tariffs. The 10% import tax took effect February 24, with the president indicating plans to increase it to 15%. This legal challenge follows the Supreme Court's recent rejection of Trump's earlier tariff attempt under a different law. Why It Matters Trump shifted to Section 122 of the Trade Act of 1974 after the Supreme Court struck down his previous tariffs issued under the International Emergency Economic Powers Act. Section 122 has never been used before to levy tariffs, but allows presidents to issue limited duties to address balance of payments deficits. The states argue this rationale is improper since the U.S. abandoned the gold standard decades ago, making traditional balance-of-payments problems impossible under modern currency systems. What's at Stake Thousands of U.S. companies are already seeking refunds for approximately $170 billion paid under the overturned tariffs. The new legal battle comes as refund disputes from the earlier tariffs are heating up in court. State officials say the tariffs cause economic chaos and force Americans to absorb rising costs, contradicting widespread opposition from consumers and business owners.