Politics

12 States Sue Trump Administration Over New Tariffs on Foreign Imports

In a bold move that’s shaking up the U.S. economy, twelve states have filed a lawsuit against the Trump administration, challenging the legality of newly imposed tariffs on foreign imports. The lawsuit, filed in the U.S. Court of International Trade in New York, argues that President Donald Trump’s use of executive powers to impose these tariffs is unconstitutional and economically harmful. This legal battle has sparked heated debates about trade policy, presidential authority, and the impact of tariffs on American businesses and consumers. Let’s dive into what’s happening, why it matters, and what could come next.

What’s the Lawsuit About?

On April 24, 2025, a coalition of twelve states—Oregon, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, and Vermont—filed a lawsuit against the Trump administration. The states, led by Democratic attorneys general, claim that Trump’s tariffs, imposed through executive orders, overstep his authority. They argue that the U.S. Constitution grants Congress, not the president, the power to regulate commerce and impose taxes, including tariffs. The lawsuit specifically challenges Trump’s use of the International Emergency Economic Powers Act (IEEPA), a 1977 law that allows presidents to take trade actions during national emergencies.

The states contend that Trump’s justification for the tariffs—citing trade deficits, illegal immigration, and drug trafficking as “national emergencies”—doesn’t hold up. “The president does not have the power to raise taxes on a whim, but that’s exactly what President Trump has been doing with these tariffs,” said New York Attorney General Letitia James in a statement. The lawsuit asks the court to declare the tariffs illegal and block federal agencies from enforcing them.

The Tariffs in Question

Since taking office in January 2025, President Trump has signed multiple executive orders imposing tariffs on imports from various countries. These include:

A 145% tariff on goods from China, escalating a trade war with the world’s second-largest economy.
A 25% tariff on imports from Canada and Mexico, key U.S. trading partners under the USMCA (United States-Mexico-Canada Agreement).
A 10% baseline tariff on imports from most other countries, announced on April 2, 2025, during an event Trump called “Liberation Day.”

These tariffs aim to address what Trump describes as unfair trade practices and a massive U.S. trade deficit, which reached over $1 trillion in 2023. The administration argues that tariffs protect American industries and workers by encouraging companies to produce goods domestically. However, the states suing Trump say these measures are causing chaos in the economy, raising costs for businesses and consumers alike.

Why Are the States Suing?

The twelve states argue that Trump’s tariffs are not only illegal but also economically disastrous. Here’s why they’re taking action:

Constitutional Overreach: The lawsuit claims that only Congress has the authority to impose tariffs under Article I of the U.S. Constitution, which gives Congress the power to “lay and collect taxes, duties, imposts, and excises.” The states argue that Trump’s use of the IEEPA to bypass Congress is unlawful, as no president in the law’s nearly 50-year history has used it to impose tariffs.
Economic Harm: The tariffs are raising costs for American businesses and consumers. Experts estimate that the tariffs could increase the cost of living for the average U.S. household by more than $3,800 a year. Small businesses, like those importing goods from China, are facing canceled orders and potential shortages, which could lead to layoffs and price hikes. For example, a retail expert warned that without a pause in the trade war with China, the damage to U.S. businesses could become “irreversible.”
Market Instability: Trump’s rapid imposition of tariffs, followed by sudden pauses or exemptions, has created uncertainty in global markets. For instance, after announcing a 90-day pause on some tariffs due to market backlash, Trump kept the 145% tariff on China, leading to retaliatory tariffs from Beijing. This back-and-forth has rattled financial markets and disrupted supply chains.

Arizona Attorney General Kris Mayes called Trump’s tariff strategy “economically reckless” and “insane,” arguing that it threatens jobs and economic stability. Oregon Attorney General Dan Rayfield echoed this sentiment, stating, “We cannot sit quietly while the president takes actions that are going to cost us jobs, increase the prices that we pay, and harm our economy.”

The Broader Impact of the Tariffs

The tariffs have far-reaching consequences, both domestically and internationally. In the U.S., businesses are grappling with higher costs for imported goods, which could lead to higher prices for consumers. For example, industries like retail, furniture, and apparel are already reporting canceled orders and supply chain disruptions. The Tax Foundation estimates that the tariffs will amount to a $1,200 tax increase per U.S. household in 2025, making them one of the largest tax hikes since 1993.

Globally, the tariffs have sparked retaliatory measures. China raised tariffs on U.S. goods to 125% in response to Trump’s 145% levy, while the European Union proposed retaliatory tariffs on nearly €100 billion of U.S. imports, including aircraft and medical devices. Canada and Mexico have also threatened counter-tariffs, raising concerns about a broader trade war that could disrupt the USMCA.

What’s the Legal Argument?

The core of the lawsuit hinges on the IEEPA, which Trump has used to justify his tariffs. The law allows presidents to regulate trade during “unusual and extraordinary threats” to national security. However, the states argue that trade deficits and immigration issues don’t qualify as emergencies under the law. They point out that no president has ever used the IEEPA to impose tariffs, and legal scholars, like Gerard Magliocca, argue that the law doesn’t explicitly grant tariff authority.

The lawsuit also cites the Administrative Procedure Act, claiming that Trump’s tariff orders lack transparency and proper justification. The states are asking the court to issue a permanent injunction to stop the tariffs and prevent similar actions in the future.

What’s Next?

The lawsuit is one of several legal challenges to Trump’s tariffs. Earlier in April 2025, the Liberty Justice Center filed a similar lawsuit on behalf of five small U.S. businesses, and California Governor Gavin Newsom launched a separate suit, arguing that the tariffs could cost his state billions in revenue. On May 29, 2025, the U.S. Court of International Trade ruled in favor of the plaintiffs in two cases, blocking most of Trump’s IEEPA-based tariffs and stating that the president exceeded his authority. However, a federal appeals court temporarily reinstated the tariffs, creating uncertainty as the legal battle continues.

The Trump administration has vowed to fight the rulings, with White House spokesperson Kush Desai calling the lawsuits a “witch hunt” and defending the tariffs as necessary to address national emergencies like trade deficits and drug trafficking. The administration could also explore other legal avenues, such as Section 232 of the Trade Expansion Act or the Trade Act of 1974, to reimpose tariffs if the IEEPA-based ones are permanently blocked.

Why This Matters to You

For everyday Americans, the outcome of this lawsuit could affect everything from the price of groceries to the availability of imported goods like electronics and clothing. Small businesses, already struggling with supply chain issues, may face higher costs or closures if the tariffs remain. On the other hand, supporters of the tariffs argue that they protect American jobs and industries by encouraging domestic production.

As the legal battle unfolds, it raises bigger questions about the balance of power between the president and Congress, as well as the best way to manage trade in a globalized economy. Will the courts side with the states and block the tariffs, or will Trump’s administration find a way to keep them in place? Only time will tell, but one thing is clear: this fight is far from over.

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Rajendra Chandre