Article Summary –
Two dozen states, led by Democratic governors and attorneys general, have filed a lawsuit challenging President Trump’s imposition of 15% global tariffs under Section 122 of the Trade Act of 1974, arguing that the authority granted by this section does not extend to imposing far-reaching tariffs without congressional approval. The lawsuit highlights that tariffs raise costs for American consumers and businesses, citing reports from bodies like the Federal Reserve Bank of New York and the Tax Foundation, which indicate significant financial burdens on households due to these tariffs. State leaders argue that Trump’s tariff policy is causing economic harm, with increased costs for essential goods and services and disruption to local economies, and seek a negotiated, strategic trade policy to alleviate these issues.
On March 5, 24 states filed a lawsuit challenging President Donald Trump’s proposed global tariffs. The states argue these tariffs exceed presidential authority and financially burden Americans.
Democratic governors and attorneys general from these states are urging the Court of International Trade in New York to declare Trump’s 15% tariffs under the 1974 Trade Act’s Section 122 as unauthorized.
Section 122 allows the imposition of tariffs up to 15% for no more than 150 days to address significant U.S. balance-of-payments deficits or prevent dollar depreciation.
The provision has never before been used for tariff imposition, the lawsuit claims.
After the U.S. Supreme Court recently overturned Trump’s tariffs under the International Emergency Economic Powers Act, Trump questioned the justices’ loyalty and proposed a global 15% tariff.
“The President’s intent is clear: to exercise unrestricted authority over global tariffs using any available legal rationale,” states the lawsuit.
The lawsuit references the Federal Reserve Bank of New York, stating that 90% of tariff costs are borne by American consumers and companies.
Other reports highlight tariff impacts on U.S. residents. The Tax Foundation reports Trump’s tariffs cost families $1,000 per household by 2025. The Joint Economic Committee’s Democratic minority found U.S. families paid nearly $1,745 in tariff costs between February 2025 and January 2026.
The lawsuit argues “erratic trade policy swings” harm markets, hinder state procurement, and escalate administrative costs.
“The President’s use of Section 122 for tariff changes via executive actions reflects personal whims over reasoned decisions,” the lawsuit contends. “These abrupt changes disrupt state economies.”
White House spokesperson Kush Desai stated Trump is acting lawfully and intends to defend the actions in court.
“The President is using his congressional authority to tackle international payments issues and significant U.S. balance-of-payments deficits,” said Desai.
What state leaders are saying
The lawsuit involves Oregon, Arizona, California, New York, Colorado, Connecticut, Delaware, Illinois, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and Wisconsin.
Democratic leaders from these states clarified their reasons for joining the lawsuit.
Wisconsin Gov. Tony Evers stated Trump’s tariffs are reckless, unlawful, and detrimental to families, farmers, manufacturers, and small businesses. He noted Wisconsin importers paid $3.5 billion in tariff taxes from March to December 2025.
“Americans face rising costs, and fluctuating tariffs worsen the situation,” Evers said. “Wisconsin families shouldn’t bear the burden of illegal tariff taxes, prompting our legal action.”
Michigan Attorney General Dana Nessel highlighted tariffs’ impact on grocery bills, gas prices, and essentials like medicine and clothing, also affecting the manufacturing sector.
According to a news release, Michigan, the fifth-largest importer, saw food prices rise 3.6% last year, with construction materials increasing 7%.
“Tariffs as political weapons result in higher costs for everyone, felt daily at the breakfast table,” Nessel stated. “Fortunately, Michigan is challenging this.”
Michigan Gov. Gretchen Whitmer urged Congress and Trump to negotiate practical trade policies to enhance jobs and reduce costs.
“I’ll continue advocating for economic growth, job repatriation, and family relief,” Whitmer said. “Let’s cooperate with allies for a promising future.”
Virginia Attorney General Jay Jones argued Trump lacks authority to impose these tariffs on Virginia families, potentially increasing household costs in Virginia by $400 to $3,000 annually and raising unemployment by 0.3%.
“For over a year, President Trump has overstepped legal powers,” Jones remarked. “The Supreme Court opposed this plan, yet the Administration continues its illegal actions against the Court’s ruling.”
Pennsylvania Gov. Josh Shapiro asserted the Supreme Court’s decision to strike down Trump’s tariffs was correct.
“These tariffs have created chaos and price hikes for farmers, small businesses, and families,” Shapiro stated. “I’ve previously defended Pennsylvanians from this damaging trade war’s costs, and I’m prepared to do so again.”
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