Twenty-four US states have filed a lawsuit against the Trump administration in an international trade court over the new 10% import tariff, demanding the court order a halt to the tariff and a refund of taxes already collected.
On March 6, 2569 at 12.38 p.m., Reuters news agency reported that Twenty-four U.S. states filed lawsuits against President Donald Trump's administration on Thursday. This marks the first legal challenge to the new 10% import tariff announced by the government, arguing that the president cannot circumvent a recent U.S. Supreme Court ruling that overturned numerous previous tariffs by invoking new legislation to introduce a new set of tariffs.
Democratic-led states, including New York, California, and Oregon, argued in a lawsuit filed in the U.S. International Trade Court in New York that the tariffs Trump announced immediately after the Supreme Court ruling on February 20 were illegal, stating that the government used its authority under Section 122 of the Trade Act of 1974 to impose temporary tariffs for 150 days.
The prosecuting government argues that the law was intended to address a short-term financial crisis and was not designed to resolve the trade deficit, a normal situation when a large economy like the United States imports more goods than it exports.
Oregon Attorney General Dan Rayfield said Trump's new taxes are an attempt to circumvent the congressional process, even though the U.S. Constitution requires that tax decisions be approved by Congress.
He stated that Trump's tax policy is one of the most unpopular economic policies in history and is creating a huge economic burden on citizens, businesses, and state governments.
The White House stated that it would fight the case fully in court, with spokesman Kush Desai saying that the president is using the powers granted to him by Congress to address the international balance of payments issue and the U.S. current account deficit.
The tariffs announced by Trump on February 20 impose a 10% import tax on goods from around the world, with U.S. Treasury Secretary Scott Bessent also indicating that the rate is likely to increase to 15% soon.
Tariffs were a key policy statement during Trump's second term, as he claimed broad authority to impose taxes without congressional approval. However, on February 20, the U.S. Supreme Court delivered a major legal blow to the government when it overturned many of the taxes Trump had imposed under the International Emergency Economic Powers Act (IEEPA), stating that the law did not grant the president the powers he claimed.
Following the ruling, Trump criticized the Supreme Court judge and announced the implementation of new taxes under Section 122 of the Trade Act of 1974, which had never before been used to impose taxes in U.S. history.
The law empowers the president to impose taxes of up to 15% for a period of up to 150 days on any country to address severe balance of payments issues, without requiring investigation or other legal procedures. Extending the measure requires congressional approval.
The plaintiffs' group argued that the measure was designed to address old-school financial risks that arose in the era when foreign governments could exchange dollars for gold from the United States, but the Trump administration is using it to address a different type of trade deficit.
The states joining the lawsuit include 22 states with Democratic attorneys general, as well as Pennsylvania and Kentucky, which have Democratic governors but Republican attorneys general. All are seeking a court order to halt the new tax measures and to refund taxes levied under Section 122.
Meanwhile, the International Trade Court also has nearly 2,000 cases pending from businesses seeking refunds for taxes levied under the IEEPA law, totaling more than $130,000 billion. The court recently ordered the U.S. Customs and Border Protection to begin the process of refunding these taxes.
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