"The Democratic attorneys general and governors in the lawsuit argue that Trump is overstepping his power with planned 15% tariffs on much of the world. Trump has said the tariffs are essential to reduce America's longstanding trade deficits. He imposed duties under Section 122 of the Trade Act of 1974 after the Supreme Court struck down tariffs he imposed last year under an emergency powers law."
"The new suit argues that Trump can't pivot to Section 122 because it was intended to be used only in specific, limited circumstances - not for sweeping import taxes. It also contends the tariffs will drive up costs for states, businesses and consumers. The Democratic states and other critics say the president can't use Section 122 as a replacement for the defunct tariffs to combat the trade deficit."
"Section 122, which has never been invoked, allows the president to impose tariffs of up to 15%. They are limited to five months unless extended by Congress. Four days after the Supreme Court struck down his sweeping IEEPA tariffs Feb. 20, Trump invoked Section 122 to slap 10% tariffs on foreign goods."
Two dozen states led by Democratic attorneys general from Oregon, Arizona, California, and New York filed a lawsuit challenging President Trump's new 15% global tariffs. Trump invoked Section 122 of the Trade Act of 1974 after the Supreme Court struck down his previous tariffs imposed under emergency powers. The plaintiffs argue Trump is overstepping his authority by using Section 122, which was intended for specific, limited circumstances, not sweeping import taxes. They contend the tariffs will increase costs for states, businesses, and consumers. The lawsuit follows a court ruling requiring refunds for companies that paid tariffs under Trump's previous framework. Treasury Secretary Scott Bessant indicated the administration plans to raise tariffs to the 15% maximum allowed under Section 122.
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