A coalition of 24 U.S. states has initiated a legal battle against President Donald Trump’s administration, challenging the newly implemented 10 percent global tariffs. This marks the first significant legal push regarding Trump’s tariffs after the U.S. Supreme Court invalidated many previously imposed tariffs on imported goods, a ruling made earlier in February 2026. The states, led by Democratic governors including those of New York, California, and Oregon, posited that the latest tariffs are unlawful, suggesting that the president’s attempts to cite new legal authority are in direct violation of the Supreme Court’s decision.
The legal argument outlines that Trump’s tariffs, announced immediately following the Supreme Court ruling, are not warranted under the circumstances. The President justified the tariffs as a critical measure intended to ameliorate America’s long-standing trade deficits. He imposed these duties under Section 122 of the Trade Act of 1974, a provision that had previously remained unused and allows for tariffs of up to 15 percent for a duration of five months unless Congress intervenes. This section is designed to tackle urgent monetary emergencies rather than serve as a mechanism for chronic trade deficit remedy, according to the filing by the states in the U.S. Court of International Trade based in New York.
The states contend that the balance-of-payments deficit metrics outlined in the Trade Act were originally meant to address outdated monetary risks, particularly from a time when foreign governments could exchange dollars for gold. By misapplying this standard, the Trump administration seeks to correct trade deficits arising from the imbalance between imports and exports, a strategy they deem inappropriate.
Oregon’s Attorney General, Dan Rayfield, expressed concerns during a press conference about the legality of Trump’s tariffs, stating that they represent an unlawful sidestepping of necessary congressional collaboration, a cornerstone of the U.S. Constitution. Rayfield emphasized the detrimental economic impact of these tariffs, which he argued have historically incurred significant costs to American businesses and state economies.
Following a recent judicial ruling that companies should receive refunds for tariffs paid under the previous framework, the legal landscape surrounding these tariffs is becoming increasingly complex. White House spokesperson Kush Desai indicated that the administration will vigorously defend Trump’s decision in court. Desai argued that the President’s actions are within his congressional mandate to rectify pressing international payment issues and manage the nation’s significant balance-of-payments deficits.
Trump’s executive order, issued on February 20, introduced the new tariffs, with U.S. Treasury Secretary Scott Bessent anticipating that these rates could escalate to 15 percent within the week. The President’s reliance on tariffs has formed a central theme of his foreign policy, illustrating a belief in sweeping authority to impose these charges without needing congressional approval. However, the Supreme Court’s recent ruling striking down a considerable number of tariffs under the International Emergency Economic Powers Act (IEEPA) showcased potential limitations to this authority.
As the legal proceedings unfold, the U.S. court system is also faced with approximately 2,000 lawsuits from businesses seeking refunds for over 0 billion in IEEPA tariff payments made prior to the Supreme Court’s latest ruling. In line with the court’s recent order, U.S. Customs will begin the processing of these tariffs, highlighting the evolving complexities of trade law in the current administration.
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