Twenty-four U.S. states have filed a lawsuit seeking to block the Trump administration’s latest round of global tariffs, arguing the new measures are unlawful and will severely harm state economies. The states, led by New York and California, are asking the court to issue an order to block the tariffs and refund any payments already made.
The lawsuit targets the administration’s use of the rarely-invoked Section 122 of the Trade Expansion Act, which allows the president to impose tariffs for national security reasons. Trump has used this authority to slap tariffs on a wide range of imports, including steel, aluminum, and now a broad set of consumer goods from China.
Legal experts say the states face an uphill battle, as the national security clause has historically given the White House broad discretion on trade policy. However, the states argue the tariffs are not actually motivated by security concerns but rather political calculations ahead of the 2020 election.
The states claim the tariffs will cost their economies billions, leading to job losses, higher consumer prices, and retaliatory tariffs from U.S. trading partners. They are particularly concerned about the impact on key industries like agriculture, manufacturing, and tech.
With the U.S. and China already engaged in a tit-for-tat tariff war, the latest escalation threatens to further disrupt global trade and investment. Analysts warn that an all-out trade war could tip the U.S. economy into recession, undercutting a key part of Trump’s 2020 reelection message.
The legal challenge marks the latest attempt by states and other stakeholders to rein in the White House’s expansive use of national security powers to justify protectionist trade policies. However, the courts have historically been reluctant to second-guess the president’s authority in this area, making the states’ case an uphill battle.
