That’s why twelve U.S. states, led by New York, have filed a lawsuit against former President Donald Trump. Their goal is to end the tariffs he put in place under the International Emergency Economic Powers Act (IEEPA). This legal action comes amid ongoing concerns about the impact of these tariffs on global trade and the U.S. economy. Trump acted outside the scope of his authority under the IEEPA. This is the first time that any president has ever used this law to impose tariffs.
Trump invoked the IEEPA as a basis for imposing a staggering 145% tariff on goods imported from China, a move that has led to escalating tensions in international trade and rattled global markets. Faced with this backlash from financial markets, Trump came out and declared a 90-day pause on the new tariffs. He went further by cutting the rate to a mere 10% for most other countries. This hold didn’t apply to China, who Trump claimed to have experienced a “disrespectful” withdrawal and a series of retaliatory measures.
The states participating in the lawsuit argue that Trump lacks the legal authority to impose tariffs under the IEEPA without first declaring a national emergency. The complaint, filed with the United States Court of International Trade, states, “By claiming the authority to impose immense and ever-changing tariffs on whatever goods entering the United States he chooses, for whatever reason he finds convenient to declare an emergency, the President has upended the constitutional order and brought chaos to the American economy.”
California recently filed its own, separate suit against the Trump administration. This action follows on the heels of the still-pending multi-state lawsuit seeking to block the tariffs. These legal challenges are coming on the heels of Trump’s announcement that as of April 2. He announced “reciprocal” tariffs on countries across the world and called the day “Liberation Day.” The tariffs have already begun to warp global trading patterns and stoked fears of a lengthy trade war.
In response to the lawsuits, White House spokesman Kush Desai criticized the states’ actions, suggesting that they were more focused on “prioritizing a witch hunt against President Trump over protecting the safety and wellbeing of their constituents.”
Meanwhile, as these legal battles rage on, Trump remains hopeful that he can cut a deal with China. Though the high tariffs are still in place, he continues to keep hope that they’ll be resolved. He referred to the 145% tariff as “very high” – a clue that he would be amenable to negotiations.