A coalition of 24 Democrat-led states has filed a sweeping federal lawsuit against President Donald Trump and several federal agencies and officials, arguing that their latest tariffs violate both federal law and the U.S. Constitution. The case, filed last Thursday in the United States Court of International Trade, challenges tariffs imposed under long-dormant Section 122 of the Trade Act of 1974 right after the Supreme Court struck down the administration’s earlier “emergency” tariff policy.
The states are asking the court to block the tariffs and order refunds for the costs already paid.
A New Tariff Strategy
The legal battle began after a major ruling from the Supreme Court on February 20.
In Learning Resources, Inc. v. Trump, the Court ruled that the administration could not impose sweeping tariffs using the International Emergency Economic Powers Act (IEEPA). That law allows presidents to respond to economic emergencies, but the Court concluded that it does not authorize tariffs. The ruling was a significant blow to the administration’s trade policy. For more than a year, the White House had been imposing global tariffs using IEEPA.
But the administration swiftly adopted a new strategy. Per the challenge:
Having lost the battle on IEEPA, the President now dusts off a separate statute: Section 122 of the Trade Act of 1974, 19 U.S.C. § 2132, which is another statute that has never been used to impose tariffs. Indeed, it has never been used at all.
On the same day the Supreme Court decision was issued, Trump signed a proclamation invoking Section 122 to impose a 10-percent tariff on most imports worldwide for a period of 150 days. The new tariff took effect on February 24.
The next day, the president announced on Truth Social that the tariff would rise to 15 percent — the maximum rate allowed by the statute. Treasury Secretary Scott Bessent later confirmed the prospect.
Hellbound and Down 