Trump Hit with Lawsuit Over Illegal Tariffs

NEW YORK – The Trump administration is facing a fresh legal battle, this time over a new round of tariffs slammed onto the economy despite a recent Supreme Court smackdown. New York Attorney General Letitia James today spearheaded a coalition of 21 other Attorneys General, alongside the Governors of Kentucky and Pennsylvania, filing suit to halt what they call an illegal power grab by the former president.

The lawsuit centers on a proclamation issued by President Trump following his loss in court over previous tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This time, Trump is invoking Section 122 of the Trade Act of 1974, slapping tariffs on goods from a range of countries. Attorney General James and the coalition argue this is a blatant attempt to circumvent the law and the Constitution, essentially raising taxes on everyday Americans. They’re seeking a court order to declare the tariffs unlawful and demand refunds for states already impacted.

“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.”

The core of the legal argument rests on the outdated nature of Section 122. Originally designed for a fixed-rate exchange system – think the gold standard – it allowed limited tariffs to address “balance of payments” deficits. The U.S. abandoned that system decades ago, meaning those deficits no longer exist. The Attorney General’s office points out the administration *admitted* during the previous IEEPA case that trade deficits and balance of payments deficits are fundamentally different. Trump’s justification – the country’s trade deficit – simply doesn’t hold water under the law.

Adding insult to injury, the new tariffs aren’t even consistently applied. While goods from Canada, Mexico, and several Central American nations are exempt, a massive 84 pages detail specific product exceptions. This selective application, the lawsuit argues, further demonstrates the illegality of the tariffs. Governor Hochul chimed in, stating, “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. 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.”

Sources within the Attorney General’s office suggest this is a clear attempt to sidestep the Supreme Court’s previous ruling. The administration, they say, is desperately trying to find a loophole to impose tariffs without legal justification. The Grimy Times will continue to follow this case, exposing the financial maneuvers and political games that impact the wallets of everyday Americans. This isn’t about trade; it’s about a president refusing to accept the boundaries of the law.”

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RELATED: Trump Hit With New Lawsuit Over Illegal Tariffs