New York Attorney General Letitia James, along with prosecutors from 23 other states, is preparing 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) last year. The Supreme Court ruled that Trump's use of IEEPA to impose duties was improper, leading to the invalidation of those tariffs [1]. In response, President Trump announced a new wave of tariffs based on Section 122 of the Trade Act of 1974, setting the global tariff rate at 10%, with plans to increase it to 15% [1].
The coalition of state attorneys general will file their lawsuit in the Court of International Trade, seeking to declare Trump's latest tariffs illegal and to order refunds to the states. Their argument centers on the claim that Section 122 was intended to address monetary imbalances under the gold standard, not trade imbalances, and that the tariffs violate the Constitution's separation-of-powers principle by usurping Congress's authority to impose duties. Additionally, they assert that Trump's tariffs do not meet the 1974 trade act's requirement for consistent application across countries [1].
Letitia James stated that the president is causing 'more economic chaos' and expects Americans to bear the financial burden, describing the move as an attempt to escape the Supreme Court's ruling against tariffs imposed under IEEPA [1]. The ongoing legal battles have contributed to international uncertainty regarding U.S. tariff policy. On Wednesday, a federal court ruled that companies who paid tariffs struck down by the Supreme Court are owed billions of dollars in refunds [1].
Last year, James and 11 other states sued to halt Trump's original tariffs, a case that was eventually combined with suits from small businesses and resulted in the Supreme Court's decision against the administration. The current lawsuit is expected to add further complexity to the legal and economic landscape surrounding U.S. trade policy [1].
CONCLUSION
The coalition of 24 state attorneys general is moving to block President Trump's latest tariffs, arguing they are illegal and unconstitutional. The legal action follows a Supreme Court decision invalidating previous tariffs and ongoing court rulings mandating refunds to affected companies. This escalation signals continued legal and economic uncertainty for U.S. trade policy, with potentially significant market implications.