HeadlinesBriefing favicon HeadlinesBriefing.com

States Sue Trump Over 10% Tariffs in New Legal Battle

New York Times Business •
×

A coalition of 24 Democratic attorneys general sued President Trump over his new 10% tariff on imports, marking the latest legal challenge to his trade policies. The lawsuit, led by Oregon, New York, California, and Arizona, argues Trump exceeded his authority by imposing what they call an illegal global tax on imports.

This legal fight comes after the Supreme Court struck down Trump's previous tariffs under emergency economic powers law. Now the administration has invoked Section 122 of the Trade Act of 1974, which allows up to 15% tariffs for 150 days. The states argue Trump misused this provision by citing trade deficits rather than the required balance-of-payments concerns.

The legal battle could force the administration to refund billions collected under the 10% tariff, potentially $35 billion if maintained for the full 150-day period. This follows demands for repayment of over $100 billion from previously invalidated tariffs. Legal experts remain divided on whether courts will grant Trump discretion in determining economic conditions justifying these duties.