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Trump's New Tariff Plan Under 1974 Trade Act Sparks Domestic Legal Challenge Again
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Trump's New Tariffs Face Fresh Legal Battle as States Sue Again
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Moneycontrol
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05-03-2026, 22:03
Trump's New Tariffs Face Fresh Legal Battle as States Sue Again
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New York AG Letitia James leads 23 states in a lawsuit against President Donald Trump’s global tariff regime.
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The lawsuit, filed in the U.S. Court of International Trade, seeks to block the new tariffs and demand refunds.
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This legal challenge comes days after the U.S. Supreme Court struck down Trump's earlier tariff plan under IEEPA.
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States argue Trump's new tariffs, imposed under Section 122 of the 1974 Trade Act, misuse the law and violate separation of powers.
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James stated Trump is causing "economic chaos" and "ignoring the law" to raise taxes on consumers and small businesses.
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