Twenty-two Democratic Attorneys General have filed a lawsuit challenging President Trump's use of Section 122 tariffs, invoking free-market economist Milton Friedman in their legal arguments. The attorneys general argue that Trump's emergency tariffs, reimposed after the Supreme Court struck down his previous measures, exceed the statutory authority granted under the provision. The legal battle centers on whether the president can use Section 122 to address trade deficits.

Section 122 allows tariffs up to 15% for 150 days to address "large and serious balance-of-payments deficits." Trump justifies the tariffs as necessary to reduce the U.S.'s $1.2 trillion trade deficit in goods. However, the attorneys general contend that trade deficits don't qualify as balance-of-payments deficits under the law's intended meaning. They argue the provision was designed for currency and international payment issues, not trade imbalances.

The case highlights tensions between executive authority and congressional intent in trade policy. If successful, the lawsuit could limit presidential power to impose emergency tariffs without explicit congressional approval. The outcome may reshape how future administrations address trade concerns and balance-of-payments issues.