A coalition of Democratic attorneys general and governors across 24 US states are suing Donald Trump to block his latest round of tariffs.
The White House is planning to enact a new 15% tariff on all imports after the supreme court declared Trump’s “liberation day” tariffs illegal. The tariffs have yet to go into effect, though the White House said the new rate would start this week.
The lawsuit, led by New York’s attorney general, Letitia James, argues that Trump does not have the authority to impose these tariffs, and demands states are refunded for tariff costs. Attorneys general from 21 other states, along with the governors of Kentucky and Pennsylvania, are joined in the suit, which is expected to be filed on Thursday in the US court of international trade.
The attorneys filing the lawsuit argue that no president has ever issued tariffs under section 122 of the Trade Act of 1974, which they say was created for outdated monetary balance problems. The law caps the tariff rate and time to 15% for a maximum of 150 days.
“Once again, President Trump is ignoring the law and the constitution to effectively raise taxes on consumers and small businesses,” James said in a statement. “The president is causing more economic chaos and expecting Americans to foot the bill. These tariffs will only drive up the cost of living, and I will continue to uphold the rule of law to protect New Yorkers.”
The New York governor, Kathy Hochul, in a statement called the tariffs “illegal and reckless” and demanded the federal government “refunds the $13.5bn taken from hard-working New Yorkers and end the economic chaos that these unlawful taxes have created”.
In a statement, White House spokesperson Kush Desai said the administration “will vigorously defend the president’s action in court”.
He said: “The president is 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.”
The supreme court did not provide guidance on refunds, creating confusion over how importers will be reimbursed for the over $130bn in tariff payments collected by the US government, leaving the issue for lower courts to decide.
The suit is one of roughly 2,000, mostly from importers who are seeking their share of a potential refund. After the supreme court’s ruling, Trump immediately struck down the idea of handing out refunds without a prolonged legal fight. “It’s not discussed. We’ll end up being in court for the next five years,” he said at the time.
On Wednesday, a US trade court judge ordered the federal government, specifically US Customs and Border Protection (CBP), to begin repaying potentially billions of dollars in refunds for tariffs paid by importers. A hearing is scheduled for Friday, where CBP officials are expected to discuss the agency’s refund plans.
