Trump Hit With New Lawsuit Over Illegal Tariffs

NEW YORK – The Trump administration is facing a fresh legal onslaught. New York Attorney General Letitia James today spearheaded a coalition of 21 other attorneys general, alongside the governors of Kentucky and Pennsylvania, in a lawsuit aimed at halting the latest round of tariffs imposed by the former president. The move comes hot on the heels of a Supreme Court ruling against Trump’s previous attempt to levy sweeping tariffs under the International Emergency Economic Powers Act (IEEPA).

The lawsuit alleges that the newly issued proclamation, imposing tariffs on a range of countries and goods via Section 122 of the Trade Act of 1974, is a blatant overreach of presidential power. Attorney General James and the coalition argue that these tariffs fail to meet the legal requirements of Section 122 and represent a dangerous violation of the Constitution’s separation of powers. The states are demanding a court order declaring the tariffs unlawful and seeking full refunds for the billions paid in tariff costs as a direct result of Trump’s actions.

“Once again, President Trump is ignoring the law and the Constitution to effectively raise taxes on consumers and small businesses,” Attorney General James stated bluntly. “After the Supreme Court rejected his first attempt to impose sweeping tariffs, the president is causing more economic chaos and expecting Americans to foot the bill. These tariffs will only drive up the cost of living, and I will continue to uphold the rule of law to protect New Yorkers.”

Governor Hochul echoed James’s concerns, highlighting the damaging impact of the Trump administration’s policies on New York’s economy. “The Trump administration’s illegal and reckless tariff policies continue to weigh on the businesses, farmers, and consumers across New York State, hindering the state’s overall economy,” she said. “It is time the federal government refunds the $13.5 billion taken from hardworking New Yorkers and end the economic chaos that these unlawful taxes have created. I applaud Attorney General James for fighting for New Yorkers and look forward to continuing to work with her to put money back into the pockets of our families and workers.”

Legal experts point out that no president has ever attempted to impose tariffs using Section 122. The law was originally designed for limited interventions addressing specific monetary crises, notably “balance of payments” deficits – a concept largely obsolete since the U.S. abandoned fixed-rate exchange systems decades ago. The lawsuit contends that Trump’s justification for the tariffs – the country’s trade deficit – is not a legitimate basis under Section 122, a point the administration even conceded during the previous IEEPA lawsuit, admitting trade deficits are distinct from balance of payments deficits.

Further complicating matters, the new tariffs are riddled with inconsistencies and exemptions. The proclamation excludes goods from Canada, Mexico, and several Central American nations, and includes a staggering 84 pages of specific product exceptions. Attorney General James and the coalition argue this demonstrates a clear attempt to circumvent the Supreme Court’s earlier ruling against the IEEPA tariffs, and a pattern of disregard for legal precedent. The fight over these tariffs is far from over, and could have significant repercussions for the American economy.

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