On March 5, 2026, New York Attorney General Letitia James, along with attorneys general from 23 other states, announced plans to sue President Donald Trump’s administration to block its latest global tariff regime. This legal action comes just days after the Supreme Court invalidated most of Trump’s previous 'Liberation Day' tariffs, which were imposed under the International Emergency Economic Powers Act (IEEPA) and deemed improper by the Court [1]. In response to the Supreme Court defeat, President Trump immediately announced a new wave of tariffs, this time based on Section 122 of the Trade Act of 1974. The current global tariff rate is set at 10%, with the Trump administration indicating intentions to raise it to 15% [1].
The coalition’s lawsuit, expected to be filed in the Court of International Trade, seeks to declare the new tariffs illegal and to secure refunds for states. The attorneys general argue that Section 122 was intended for addressing monetary imbalances under the gold standard, not for combating trade imbalances, and that the tariffs violate the Constitution’s separation-of-powers principle by usurping Congress’s authority to impose duties. They also claim the tariffs fail to meet the 1974 trade act’s requirement for consistent application across countries [1].
Letitia James criticized the president’s actions, stating, '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.' She further accused Trump of ignoring the law and the Constitution to effectively raise taxes on consumers and small businesses [1].
The ongoing legal battles and tariff policy shifts have contributed to international uncertainty. On Wednesday, a federal court ruled that companies which paid tariffs struck down by the Supreme Court are owed billions of dollars in refunds [1]. The coalition’s move is seen as a direct response to Trump’s attempt to circumvent the Supreme Court’s ruling, adding further volatility to the trade landscape.
CONCLUSION
The coalition of state attorneys general is mounting a significant legal challenge to President Trump’s latest tariffs, arguing they are unconstitutional and improperly applied. The ongoing litigation and policy changes are creating substantial uncertainty for international trade and U.S. businesses, with billions of dollars in refunds already ordered by federal courts. Market participants should expect continued volatility as the legal and political battle over tariffs unfolds.