A coalition of nearly two dozen states has launched a legal challenge against President Donald Trump's newly imposed global tariffs, which were enacted shortly after a Supreme Court ruling that invalidated previous tariffs under an emergency powers law.
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pbs.orgapnews.comThe lawsuit, spearheaded by Democratic attorneys general from states such as Oregon, Arizona, California, and New York, argues that Trump is exceeding his authority by implementing planned tariffs of up to 15% on imports from many countries.
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gov.ca.govchicago.suntimes.comTrump has justified the tariffs as a necessary measure to mitigate America's long-standing trade deficits.
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pbs.orgwtop.comThe duties were imposed under Section 122 of the Trade Act of 1974, a provision that has never been invoked before.
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gov.ca.govapnews.comThis section permits the president to impose tariffs for a limited duration of five months unless further extended by Congress.
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apnews.comOregon Attorney General Dan Rayfield emphasized the need for financial restitution rather than further tariff impositions, stating, "The focus right now should be on paying people back, not doubling down on illegal tariffs." This lawsuit comes on the heels of a recent court ruling that mandated refunds for companies that had paid tariffs under Trump's previous framework.
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wtop.comThe White House has responded by asserting that Trump is operating within the powers granted to him by Congress, aiming to address critical international payment issues and the serious balance-of-payments deficits facing the country.
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pbs.orgchicago.suntimes.comSpokesman Kush Desai remarked, "The Administration will vigorously defend the President's action in court.".Legal experts have noted that the new lawsuit challenges Trump's pivot to using Section 122, arguing that this provision was designed for specific, limited circumstances rather than sweeping import taxes.
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apnews.comwtop.comArizona Attorney General Kris Mayes highlighted a study from the New York Federal Reserve Bank, which estimated that the tariffs would cost American households approximately $1,200 annually.
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pbs.orgMayes remarked, "That is money out of the pockets of American families trying to buy groceries, pay rent and keep their small businesses afloat.".The states involved in this lawsuit have previously successfully contested tariffs imposed under the International Emergency Economic Powers Act (IEEPA) and are now pushing back against what they describe as an overreach of presidential power.
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apnews.comIn the wake of the Supreme Court's decision that struck down Trump's IEEPA tariffs, the administration announced an immediate 10% duty on foreign goods under Section 122, which was subsequently raised to 15% by Treasury Secretary Scott Bessent.
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pbs.orggov.ca.govCritics assert that Trump's use of Section 122 is inappropriate and that the provision does not adequately address trade deficits, an issue it was not designed to tackle.
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wtop.comHistorically, Section 122 was developed in response to financial crises during the 1960s and 1970s when the US dollar was tied to gold.With the current economic landscape, many argue that the relevance of this provision has diminished.
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pbs.orgInterestingly, Trump's own Justice Department previously contended that Section 122 had "no obvious application" for combating trade deficits, distinguishing them as "conceptually distinct" from balance-of-payment issues.
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apnews.comHowever, some legal analysts now suggest that courts may grant Trump more leeway regarding this recent invocation of Section 122 compared to prior tariff efforts under IEEPA.
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pbs.orgapnews.comThe specialized Court of International Trade in New York is set to hear the states' lawsuit, which also includes participation from attorneys general in states like Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Rhode Island, Vermont, Virginia, Washington, and Wisconsin, as well as governors from Kentucky and Pennsylvania.
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wtop.comchicago.suntimes.comAs this legal battle unfolds, the implications for consumers, businesses, and the broader economy remain a critical focus for both supporters and opponents of the tariffs.
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gov.ca.govThe outcome may significantly influence trade policy and economic relations in the United States moving forward.
