Article Summary –
Two dozen states have filed a lawsuit against President Donald Trump’s global tariffs, claiming that his use of Section 122 of the Trade Act of 1974 to impose 15% tariffs is beyond his authority and negatively impacts U.S. consumers and states’ economies. Section 122 is intended to address large balance-of-payments deficits or prevent significant depreciation of the dollar, but its invocation for tariffs is unprecedented. Democratic leaders from various states argue that these tariffs have increased costs for consumers and businesses, disrupted trade policies, and are not legally justified, citing evidence that tariffs are financially burdening American households and harming state economies.
Two dozen states launched a lawsuit on March 5 against President Donald Trump’s new global tariffs, claiming he oversteps his authority with a costly policy.
Democratic governors and attorneys general from 24 states are urging the Court of International Trade in New York to declare that Trump lacks the authority to enforce extensive 15% tariffs under Section 122 of the Trade Act of 1974.
Section 122 allows the president to impose tariffs up to 15% for up to 150 days to address “large and serious United States balance-of-payments deficits” or “prevent an imminent and significant depreciation of the dollar in foreign exchange markets.”
The lawsuit notes this provision has never been used to set tariffs.
Following the U.S. Supreme Court’s recent decision to overturn Trump’s tariffs under the International Emergency Economic Powers Act, Trump questioned some justices’ loyalty and called for a universal 15% tariff.
The lawsuit claims Trump’s aim is to wield unchecked power for imposing tariffs globally. It cites the Federal Reserve Bank of New York, stating that 90% of tariff costs are borne by American consumers and companies.
Other reports highlight tariffs’ financial burden on U.S. citizens. The Tax Foundation found Trump’s tariffs would cost an average of $1,000 per household by 2025. A Democratic report from the U.S. Congress Joint Economic Committee showed U.S. families paid $1,745 in tariff costs from February 2025 to January 2026.
The lawsuit argues the “erratic shifts in trade policy” disrupt markets, hinder states’ procurement of goods and services, and raise administrative costs.
“The President’s use of Section 122 to impose, modify, and reinstate tariffs via executive order, memoranda, social media, and other means results in a national trade policy driven by whims rather than reasoned decisions,” the lawsuit states. “The President’s abrupt policy changes have disrupted Plaintiff States’ economies.”
White House spokesperson Kush Desai informed the Associated Press that Trump is acting lawfully and his administration will defend this in court.
“The President is using his congressionally granted authority to address major international payment problems and our serious balance-of-payments deficits,” Desai said.
What state leaders are saying
The states filing the lawsuit include 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 explain their reasons for joining the lawsuit.
Wisconsin Gov. Tony Evers stated that Trump’s tariffs are reckless, illegal, and harm working families, farmers, manufacturers, and small businesses. He referenced a group, We Pay the Tariffs, that reported Wisconsin importers paid $3.5 billion in tariff taxes from March 2025 to December 2025.
“Americans worry about rising costs and feeding their families, and unstable tariff taxes worsen the situation,” Evers said. “Wisconsin families should not bear the cost of the president’s illegal tariff taxes, and we’re going to court to stop him.”
Michigan Attorney General Dana Nessel stated in a video from her office that tariffs impact grocery bills, gas prices, and costs for medicine, clothing, and school supplies, also negatively affecting the manufacturing sector.
A news release from Nessel’s office notes Michigan is the fifth-largest importer, with food prices increasing by 3.6% and construction material costs by 7% last year.
“When tariffs become political weapons, we all feel it, daily at the kitchen counter,” Nessel said. “Thankfully, Michigan is taking action against it.”
Michigan Gov. Gretchen Whitmer expressed desires for Congress and Trump to devise a commonsense trade policy enhancing the U.S.-Mexico-Canada Agreement, creating jobs, and reducing costs.
“I’ll keep working to boost our economy, bring jobs back, and provide relief to families,” Whitmer said. “Let’s collaborate with our neighbors and allies to build a prosperous future.”
Virginia Attorney General Jay Jones in a news release said Trump lacks legal authority for this tax on Virginia families. Tariffs could elevate household costs in Virginia by $400 to $3,000 annually and increase unemployment by 0.3 percentage points, according to the release.
“For over a year, President Trump has attempted to claim unauthorized powers,” Jones said. “The Supreme Court already repudiated this scheme. Yet, the Administration continues with illegal actions, disregarding the Court’s ruling.”
Pennsylvania Gov. Josh Shapiro stated on social media that the Supreme Court rightly struck down Trump’s tariffs last month.
“This President’s tariffs have caused chaos and inflated prices for our farmers, small businesses, and families,” Shapiro said. “I’m prepared to return to court to protect Pennsylvanians from this costly trade war.”
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