Trump Tariffs Face Legal Challenge from Multiple US States
Washington D.C. – A coalition of 24 US states, led by Modern York Attorney General Letitia James, has filed a lawsuit challenging the legality of new tariffs imposed by President Donald Trump. The legal action, filed in the Court of International Trade on March 5, 2026, comes just days after the Supreme Court invalidated Trump’s previous attempt to implement sweeping tariffs using the International Emergency Economic Powers Act (IEEPA).
Supreme Court Ruling and New Tariffs
In February 2026, the Supreme Court struck down a significant portion of Trump’s “Liberation Day” tariffs, deeming his use of IEEPA improper. In response, President Trump immediately announced a new round of tariffs, this time based on Section 122 of the Trade Act of 1974. The current global tariff rate is set at 10%, with plans to increase it to 15%.
Legal Basis of the Lawsuit
The lawsuit argues that President Trump is misusing Section 122 of the Trade Act of 1974 and violating the Constitution and statutory rules requiring consistent tariff application. Specifically, the states contend that the law requires a demonstrable imbalance in the current account balance – encompassing trade, financial flows, and cross-investments – to justify the imposition of tariffs.
Statements from Key Figures
New York Attorney General Letitia James stated, “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.” She further emphasized, “President Trump is ignoring the law and the Constitution to effectively raise taxes on consumers and small businesses.”
California Governor Gavin Newsom echoed these concerns, stating, “Trump continues to implement illegal and irresponsible policies in the hope that it will stick, but it is the Americans who pay the price daily.” He added, “Trump’s tariffs were rejected by the Supreme Court, so he’s inflicting more tariffs on Californians and all Americans like a kid throwing a tantrum.”
Previous Legal Battles
This is not the first time Attorney General James has pursued legal action against President Trump. Her office previously brought a civil fraud case against Trump and the Trump Organization, which was affirmed by the Appellate Division, First Judicial Department of the New York State Supreme Court in August 2025. The court upheld the finding that Trump, his company, and two of his children were liable for fraud and limited their ability to conduct business in New York.
a federal indictment against Trump was previously dismissed and not revived.
Recent Criminal Trial
Donald Trump was previously convicted on 34 felony counts of falsifying business records in New York in May 2024, becoming the first U.S. President to be convicted of a felony. However, following his victory in the 2024 presidential election, his sentencing was temporarily suspended, and he received an unconditional discharge on January 10, 2025.
Looking Ahead
The states are seeking a ruling that deems Trump’s latest tariffs illegal and orders refunds to the states. The outcome of this lawsuit could have significant implications for US trade policy and the balance of power between the executive branch and the states.