WASHINGTON (Diya TV) — Two dozen states have filed a lawsuit against President Donald Trump, challenging his new 10% tariffs on most imports. The states argue the tariffs are illegal and could harm businesses, consumers, and state economies across the United States. The lawsuit adds another legal battle to the administration’s aggressive trade policy. State leaders say the president overstepped his authority by imposing global tariffs without congressional approval.
A coalition of 24 states filed the lawsuit Thursday in the United States Court of International Trade. Democratic attorneys general from Oregon, New York, California, and Arizona are leading the case. The states claim President Trump does not have the legal authority to impose the new tariffs. They argue he tried to bypass a recent ruling from the U.S. Supreme Court that struck down an earlier round of tariffs.
In their complaint, the states said the president used “completely unrestrained executive power.” They warned the tariffs could raise prices and hurt local businesses that rely on imported goods. Officials also said the tariffs could disrupt supply chains and create uncertainty for companies already dealing with global trade pressures.
Tariffs remain a key part of Trump’s second-term economic strategy. The administration says the policy will protect American industries, boost manufacturing, and generate billions of dollars in federal revenue. Administration officials also say tariffs strengthen U.S. negotiating power in global trade disputes.
However, critics argue the tariffs could increase consumer prices and trigger trade tensions with other countries. The administration previously collected more than $100 billion from earlier tariffs. Businesses across the country have demanded refunds after courts ruled that those duties were illegal.
After the Supreme Court blocked his earlier approach, Trump turned to another trade law. He used Section 122 of the Trade Act of 1974 to justify the new tariffs. This provision allows the president to impose tariffs of up to 15% for 150 days if the U.S. faces a balance-of-payments crisis. Trump set the tariff rate at 10% but said he may raise it to the maximum 15% soon.
No president had ever used Section 122 before Trump. Congress created the law during the economic turmoil of the early 1970s. Lawmakers designed it to address severe imbalances in international payments. Trump argued that the United States faces a serious trade imbalance. He pointed to the nation’s trade deficit as a reason for urgent action.
The states strongly dispute the president’s justification. They say the law targets balance-of-payments emergencies, not trade deficits. Economists often draw a clear distinction between the two. A balance-of-payments crisis occurs when a country struggles to pay foreign creditors. Many economists say the United States does not face that problem today.
During a news conference on Thursday, Dan Rayfield, the attorney general of Oregon, criticized the administration’s reasoning. He called the law “an archaic statute” that lawmakers never intended for this type of policy. State officials also accused the administration of selectively using economic data to justify the tariffs.
The lawsuit could have major financial consequences. If courts block the tariffs, the federal government may need to return billions of dollars collected from import taxes. Experts estimate the 10% tariff could generate about $35 billion over its 150-day lifespan. Meanwhile, the administration already faces pressure to refund more than $100 billion collected from earlier tariffs that courts declared illegal. State leaders say the government’s refusal to issue refunds raises concerns about the new tariff policy.
Even if courts block the current tariffs, the administration has other options. Officials say they plan to pursue longer-term tariffs using Section 301 of U.S. trade law. That provision allows the government to impose tariffs after investigations into unfair trade practices. Trump used Section 301 during his first term to place tariffs on imports from China.
Several new investigations are already underway. Treasury Secretary Scott Bessent said the administration expects tariff levels to return to previous levels within months. Meanwhile, Letitia James, the attorney general of New York, said the lawsuit aims to protect the U.S. economy.
“The stability of our economy is more than just a political talking point,” she said. “That is why we are asking a court to declare these tariffs unlawful.”
The case now moves forward in the federal trade court, where judges will decide whether the president’s latest tariff strategy complies with U.S. law.
