A coalition of U.S. state attorneys general led by New York Attorney General Letitia James has filed a new lawsuit seeking to block President Donald Trump’s global tariff regime, days after the U.S. Supreme Court struck down his earlier tariff plan, according to CNBC.
The lawsuit, filed Thursday in the U.S. Court of International Trade, was brought by James and top prosecutors from 23 other states. The coalition is seeking a court order declaring Trump’s latest tariffs illegal and directing refunds to states that have already paid them, CNBC reported.
The legal challenge comes after the Supreme Court last month invalidated most of Trump’s “Liberation Day” tariffs, ruling that the administration improperly used the International Emergency Economic Powers Act (IEEPA) to impose sweeping import duties.
New tariff policy introduced after Supreme Court ruling
Following the Supreme Court decision, the Trump administration announced a new round of tariffs under Section 122 of the Trade Act of 1974, in an effort to continue implementing its tariff policy.
According to CNBC, the administration has set the global tariff rate at 10 percent, while indicating that it intends to raise the rate to 15 percent.
The coalition of state attorneys general argues that the new policy represents an attempt to continue the tariff strategy using a different legal framework.
“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,” James said in a statement provided to CNBC.
“President Trump is ignoring the law and the Constitution to effectively raise taxes on consumers and small businesses,” she added.
Lawsuit argues misuse of trade law
In their filing, the attorneys general contend that Section 122 of the Trade Act of 1974 was not intended to support broad tariff programs addressing trade deficits.
According to the lawsuit cited by CNBC, the provision was designed to address monetary imbalances that existed when the United States operated under the gold standard, rather than to manage modern trade imbalances.
The coalition also argues that the tariffs violate the U.S. Constitution’s separation-of-powers principle, which assigns Congress the authority to impose import duties.
In addition, the lawsuit contends that the tariffs do not meet the Trade Act’s requirement that such measures be applied consistently across countries.
James said the administration’s latest move represents “a clear attempt to escape the Supreme Court’s ruling in the case against the tariffs imposed under IEEPA,” according to CNBC.
Ongoing legal battles over tariff policy
The current lawsuit follows an earlier legal challenge filed by James and 11 other states last year seeking to block Trump’s initial tariff program.
That case was eventually consolidated with separate lawsuits brought by small businesses affected by the tariffs, culminating in the Supreme Court decision that invalidated the administration’s earlier use of emergency economic powers.
The legal challenges have continued even after the court ruling.
According to CNBC, a federal court ruled on Wednesday that companies that paid tariffs struck down by the Supreme Court are entitled to billions of dollars in refunds.
Prior legal disputes between Trump and James
Trump and James have also been involved in separate legal disputes.
According to CNBC, the Justice Department under the Trump administration indicted James in October 2025 on two counts — bank fraud and making false statements to a financial institution.
However, a judge later dismissed the indictment, and two grand juries declined to revive the charges, leaving James without any active charges.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
