Trump admin hit with tariff lawsuits from over 20 blue states

Virginia Attorney General Jay Jones joined more than 20 Democratic-led states Thursday in suing President Donald Trump’s administration over a new round of sweeping tariffs, arguing the president is again attempting to impose taxes on Americans without congressional approval.

The lawsuit, filed in the U.S. Court of International Trade, challenges the administration’s decision to impose tariffs of up to 15% on most products worldwide under Section 122 of the Trade Act of 1974.

State officials contend the move is an attempt to sidestep a recent U.S. Supreme Court ruling that struck down earlier tariffs imposed under emergency powers.

“For more than a year, President Trump has tried to claim powers he is not entitled to under the law,” Jones said in a statement.

“The Supreme Court already rejected this scheme once. Instead of respecting that decision, the Administration is taking further illegal actions that fly in the face of the Court’s ruling. These illegal tariffs are nothing more than a tax on Virginia families and when a President tries to impose them without legal authority, it is our responsibility to step in and defend the rule of law.”

The case — State of Oregon, et al. v. Trump, et al. — is led by Oregon Attorney General Dan Rayfield, Arizona Attorney General Kris Mayes, California Attorney General Rob Bonta and New York Attorney General Letitia James. Attorneys general from 19 additional states joined the challenge, along with Pennsylvania’s governor.

At the center of the dispute is the Trump administration’s use of the International Emergency Economic Powers Act, or IEEPA, to impose sweeping tariffs earlier this year. In February, the U.S. Supreme Court ruled the statute does not authorize the president to levy tariffs, concluding that such taxing power belongs to Congress under the U.S. Constitution.

Rather than abandon the policy after that decision, the administration turned to another law — Section 122 of the Trade Act of 1974 — to justify new tariffs of up to 15% on a broad range of imported goods.

According to the coalition of states, that provision has historically been used only in narrow circumstances involving serious balance-of-payments crises and has never served as the basis for sweeping global tariffs.

The lawsuit argues that the administration’s latest move again violates federal law, disregards Congress’ constitutional authority over trade policy and bypasses procedural requirements that normally govern such actions.

Economists have also raised concerns about who ultimately pays tariffs. Studies show the costs are largely borne by American businesses and consumers rather than foreign governments.

A recent analysis by researchers at the Federal Reserve Bank of New York found that nearly 90% of the costs from tariffs imposed in 2025 were paid by Americans.

State officials say the economic effects could be significant for Virginia.

According to estimates cited in the lawsuit, tariffs this year could raise annual household costs in the state by between $400 and $3,000, increase unemployment by 0.3% and destabilize parts of the manufacturing sector.

The new case comes amid growing legal and economic fallout from the administration’s tariff strategy. Courts are already grappling with how to handle billions of dollars in duties collected under the earlier tariffs struck down by the Supreme Court, with companies across the country seeking refunds.

Nationally, the tariffs have become a flashpoint in the broader debate over presidential authority in trade policy. Critics argue the administration is stretching existing laws beyond their intended limits, while supporters say aggressive tariffs are necessary to protect U.S. industries and counter foreign trade practices.

The states are asking the Court of International Trade to block the new tariffs and declare them unlawful.

In addition to Virginia, states joining the lawsuit include Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Rhode Island, Vermont, Washington and Wisconsin.