️ A coalition of 24 US states, including New York, California, and Oregon, has filed a lawsuit against the administration of Donald Trump, challenging the legality of newly imposed 10% global tariffs. The Democratic-led states argue that the tariffs, announced by Trump immediately after a Supreme Court ruling on February 20 that invalidated most of his previous tariffs, are also illegal, alleging that the president cannot circumvent the court's decision by citing new legal authority.
️ Trump has claimed that the tariffs are essential to reduce America's longstanding trade deficits. He imposed the duties under Section 122 of the Trade Act of 1974 after the Supreme Court struck down tariffs he had imposed last year under an emergency powers law. According to the lawsuit filed in the US Court of International Trade in New York, Section 122 has never been invoked before, allows the president to impose tariffs of up to 15%, but they are limited to five months unless extended by Congress and are meant to address short-term monetary emergencies, not routine trade deficits.
️ Oregon Attorney General Dan Rayfield stated during a news conference that Trump's latest tariffs represent an attempted "end run" around working with Congress, as required by the US Constitution. He said, "Make no mistake about it, President Trump's signature economic policy is historically unpopular and is costing Americans, our business, and us as states hundreds of billions of dollars. It cannot continue just because a few of Trump's lawyers have found a way to twist words and craft a legal argument." Rayfield emphasized that the focus should now be on refunding payments to people, not doubling down on illegal tariffs.
️ White House spokesperson Kush Desai said in a statement that the administration will vigorously defend the president's action in court. He stated, "The president is using his authority granted by Congress to address fundamental international payments problems and to deal with our country's large and serious balance-of-payments deficits." Trump's February 20 executive order imposed a 10% tariff on imports, but US Treasury Secretary Scott Bessent said on Wednesday that those rates would likely rise to 15% later this week.
️ Trump has made tariffs a central pillar of his foreign policy in his second term, claiming sweeping authority to issue tariffs without input from Congress. However, the Supreme Court on February 20 handed Trump a stinging defeat when it struck down a huge swath of tariffs he had imposed under the International Emergency Economic Powers Act (IEEPA), ruling that the law did not grant him the power he claimed. Trump responded by criticizing the justices who ruled against him and announcing new duties under Section 122. He has also imposed other tariffs on imports like autos, steel, and aluminium under more traditional legal authority, which are safer from legal challenges.
️ Meanwhile, the court is grappling with about 2,000 lawsuits from businesses seeking refunds for more than $130 billion in IEEPA tariff payments made by importers before the Supreme Court's February ruling. On Wednesday, the court ordered US Customs to begin processing tariff refunds, highlighting the ongoing legal and financial turmoil stemming from Trump's tariff policies.
Source: www.aljazeera.com