More than 20 states sue over new global tariffs Trump imposed after his stinging Supreme Court loss

"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. Many of those states also successfully sued over Trump's tariffs imposed under a different law: the International Emergency Economic Powers Act (IEEPA)."

"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. 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. Treasury Secretary Scott Bessant told CNBC on Wednesday that the administration would raise the levies to the 15% limit this week."

Approximately two dozen Democratic-led states filed a lawsuit challenging President Trump's new global tariffs of 15% on imports, which he imposed under Section 122 of the Trade Act of 1974 following a Supreme Court rejection of his previous tariff authority. The lawsuit, led by attorneys general from Oregon, Arizona, California, and New York, contends that Trump is overstepping his constitutional powers and misusing Section 122, which was intended for specific, limited circumstances rather than sweeping import taxes. The states argue the tariffs will increase costs for businesses and consumers. This legal action follows a court ruling requiring refunds for companies that paid tariffs under Trump's previous framework and comes after the states successfully challenged his earlier tariffs imposed under the International Emergency Economic Powers Act.

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