Two dozen states in the US sued the Trump administration, seeking to block the latest tariffs announced by the White House.
The lawsuit, filed on Thursday, adds to the uncertainties surrounding trade policy, after the US Supreme Court ruled that many of the duties President Donald Trump had announced last year were illegal.
The White House swiftly responded by imposing a temporary 10% tariff under a different law – Section 122 of the Trade Act of 1974.
But the state officials, all Democrats, say that tariff is also illegal, arguing that the law was not meant to address trade imbalances.
According to the lawsuit, which is led by New York, California, Oregon and Arizona, the Trump administration’s imposition of tariffs also violates the US Constitution because Congress, not the president, has the power to impose sweeping tariffs, which are taxes on imports.
“He’s calling it a fix. It is not,” Arizona Attorney General Kris Mayes told a news conference announcing the lawsuit.
“It is the same illegal power-grab under a different statute than he used the last time.”
White House spokesman Kush Desai said the use of the law was legitimate and that the administration would “vigorously” defend the tariffs in court.
The president was “using his authority granted by Congress to address fundamental international payments problems and to deal with our country’s large and serious balance-of-payments deficits”, he added.
The complaint was filed in the US Court of International Trade by 22 state prosecutors and two Democratic governors.
It mirrors a previous lawsuit filed by a smaller group of 12 state attorneys general over tariffs Trump introduced last year under the International Emergency Economic Powers Act (IEEPA).
Those duties, which started at 10% but hit more than 40% for goods from some countries, kicked off a flurry of trade negotiations as countries pushed to secure lower rates in exchange for promises of investment and other changes.
After the Supreme Court rejected those tariffs last month, the White House announced the new Section 122 global levy at a rate of 10%. That law allows the president to impose tariffs up to 15% for 150 days without Congress, under certain conditions.
US Treasury Secretary Scott Bessent said recently that the US was “likely” to raise the rate to 15%, as Trump had threatened, this week.
“After the Supreme Court rejected his first attempt to impose sweeping tariffs, the president is causing more economic chaos and expecting Americans to foot the bill,” New York Attorney General Letitia James said in a statement.
The state prosecutors and governors who filed the lawsuit have asked the court to block the new tariffs from being implemented and are seeking refunds for the Section 122 levies.
California Attorney General Rob Bonta told Thursday’s news conference that the new state lawsuit could bring relief to businesses and consumers “very soon”.
“The president’s rationale for these unlawful tariffs has gone from unreasonable to ridiculous,” he said.
A federal judge on Wednesday cleared the wayfor thousands of businesses to receive refunds for tariffs that the Supreme Court struck down, ordering Customs and Border Protection to issue payments.
By BBC News
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