Moneycontrol PRO
HomeWorldTwelve states sue Trump over ‘illegal’ tariffs imposed under emergency powers

Twelve states sue Trump over ‘illegal’ tariffs imposed under emergency powers

Twelve states sued the Trump administration, claiming it illegally used emergency powers to impose tariffs that could worsen inflation and violate constitutional limits.

April 24, 2025 / 12:17 IST
Twelve states sue Trump over ‘illegal’ tariffs

A group of twelve US states sued the Trump administration on Wednesday for allegedly imposing tariffs illegally that equate to tax increases on American consumers. The states claim that President Donald Trump overstepped his authority under the International Emergency Economic Powers Act (IEEPA), a law generally reserved for foreign threats, not trade conflicts, CNN reported.

States claim Trump abused emergency powers to justify tariffs

The suit, brought in the US Court of International Trade, asks to enjoin the Trump administration from imposing both the current tariffs and the just-suspended "reciprocal" tariffs, which are slated to resume within weeks. New York, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, Oregon, and Vermont attorneys general are among those joining the lawsuit.

In the almost five decades since it became law, no president ever employed IEEPA to slap on tariffs," the lawsuit contends, alleging that Congress never authorized its use. Trump's understanding contravenes the Constitution as well as the Administrative Procedure Act, the group argues.

White House rejects lawsuit as political "witch hunt”

White House spokesperson Kush Desai shot back that the lawsuit constituted a "witch hunt" and that the tariffs were justified in order to address national emergencies like illegal immigration, fentanyl smuggling, and the exploding trade deficit.

Another White House spokesperson, Harrison Fields, repeated previous justifications of the tariffs, saying trade deficits are a national emergency and warrant Trump using IEEPA.

Broader legal pushback against Trump's tariff policy

This action comes on top of an increasing number of legal efforts opposing Trump's trade policies. California sued last week, and small business organisations and the New Civil Liberties Alliance (NCLA) sued the administration as well, making similar constitutional objections.

New York Attorney General Letitia James argued that Trump's actions went against his campaign promises to reduce the cost of living. "These illicit tariffs will have the precise opposite result on American families," she cautioned, citing the danger of inflation, loss of jobs, and wider economic harm.

Planned tariffs in court next steps may delay or upend

If successful, the lawsuit would prevent the Trump administration from reimposing the suspended reciprocal tariffs or extending the existing ones. The court will now consider whether Trump's emergency powers rightfully apply to determining trade policy — a test that would redefine how future presidents use economic emergency legislation.

MC World Desk
first published: Apr 24, 2025 12:16 pm

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!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347