A coalition of 24 mostly Democratic-led U.S. states sued the Trump administration on Thursday in the U.S. Court of International Trade in New York. This marks the first major legal challenge to President Donald Trump’s newly imposed 10% tariffs on imports from all countries, enacted under Section 122 of the Trade Act of 1974 following a Supreme Court defeat.
Challenge to Executive Authority The states, including California, New York, Oregon, Arizona, and others (with Pennsylvania and Kentucky led by Democratic governors despite Republican attorneys general), argue the tariffs illegally sidestep a February 20, 2026, Supreme Court ruling that struck down most prior Trump tariffs under the International Emergency Economic Powers Act.
They claim Section 122 is meant for short-term monetary crises, not chronic trade imbalances, and violates congressional authority over taxes and trade.
Economic Harm and Administration Defense Oregon Attorney General Dan Rayfield called the policy “historically unpopular,” estimating costs in the “hundreds of billions” to Americans, businesses, and states. The lawsuit seeks to declare the tariffs invalid and refund payments already collected.
White House spokesperson Kush Desai defended the action, stating the president uses congressionally granted authority to address “large and serious” balance-of-payments deficits. Treasury Secretary Scott Bessent indicated rates could rise to 15% soon.
The tariffs, limited to 150 days without congressional extension, follow Trump’s swift response to the Supreme Court loss.
Broader trade tensions continue, with separate refunds pending for over $130 billion in invalidated prior duties.