A lawsuit filed by twelve states challenges President Donald Trump’s tariffs, arguing they were imposed improperly using the International Emergency Economic Powers Act (IEEPA). The states argue that the IEEPA was not intended to authorize trade tariffs and that the president exceeded his authority. A three-judge panel will hear arguments in a case brought before the Court of International Trade this week. The lawsuit seeks to halt the implementation of President Trump’s ‘Liberation Day’ tariffs and alleges they cause substantial economic harm without justification.
The suit stems from Trump’s imposition of tariffs on Canada, Mexico, and China in February, followed by a 10% across-the-board tariff targeting nations with large trade deficits. These actions were challenged in multiple legal proceedings. Notably, the Justice Department (DOJ) has defended the president’s actions, arguing that only Congress can challenge a national emergency declared by the president under IEEPA.
The lawsuit highlights ongoing tension between the states and the Trump administration regarding trade policy. In addition to the twelve-state lawsuit, California filed its own separate case challenging the tariffs. Legal advocacy groups have also intervened in these proceedings, supporting their claims with filings in various courts. Notably, 148 U.S. House Democrats signed a brief urging the court to reverse these tariffs.
Economic experts are closely following the case, as it could have significant implications for trade relations and business communities across the nation.