Trump sued by 12 states claiming his tariffs are illegal tax on Americans

A coalition of 12 Democratic state attorneys general sued President Donald Trump on Wednesday, alleging that the sweeping tariffs he unveiled this month are an unconstitutional tax that only Congress can authorize. Their complaint, reported by Politico, is filed in the U.S. Court of International Trade. It says the duties “upended the constitutional order and brought chaos to the American economy” by forcing businesses and consumers to pay more for everyday goods. New York Democratic Attorney General Letitia James is joined by her counterparts in Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, Oregon, and Vermont. Together, they argue that the president lacks statutory power under the 1977 International Emergency Economic Powers Act to impose a 10 percent tariff on all imports and levy rates exceeding 145 % on certain Chinese products. “The tariffs are massive taxes on Americans that were never approved by Congress,” the filing states. New York Governor Kathy Hochul, who is challenging the administration on a separate transportation matter, backed the lawsuit. “President Trump’s reckless tariffs have skyrocketed costs for consumers and unleashed economic chaos across the country,” she said, calling the plan “the largest federal tax hike in American history” and warning it could “push our country into a recession.” Arizona AG warns tariff fallout is “happening in real-time” The legal action comes three weeks after Trump declared April 2 “Liberation Day” and announced the 10% tariff as a negotiating tool to, in his words, “strengthen U.S. manufacturing” and confront what he called decades of unfair trade practices. Facing backlash, the administration later paused many of the duties for 90 days, a break that runs through early July. Yet some levies on Chinese solar panels, steel, and electronics remain in force. Importers of those items currently face duties of more than 145%, and the lawsuit says companies must decide within weeks whether to absorb the extra cost, pass it on to customers, or cancel orders. Arizona Attorney General Kris Mayes described the impact as immediate. “The damage is not theoretical; it is happening in real time,” she told reporters in Phoenix. Mayes pointed to equipment price spikes, weaker market confidence, and stalled shipments. “The Port of Los Angeles has seen a steep drop in freight traffic as companies begin to halt shipments from overseas. Tourism is dropping,” she added. The White House dismisses the Democrats’ suit as political. White House spokesperson Kush Desai said, “Once again, Democrats like Letitia James are prioritizing a witch hunt against President Trump over protecting the safety and well-being of their constituents”. Desai argued that the tariffs are a lawful response to “the scourge of illegal migration and fentanyl flows across our border and the exploding annual U.S. goods trade deficit”. The lawsuit highlights ripple effects on state economies, such as delayed school construction in Colorado because of higher steel costs, rising laptop prices in Connecticut, and Vermont dairy producers worried about foreign retaliation. “ These increased costs hit residents in every corner of our state,” Mayes said, warning of “ripple effects already starting to show.” The administration counters that the tariffs are part of a broader strategy. Officials note they remain “committed to using full legal authority” against what they call extraordinary foreign threats. Alongside the trade measures, Trump has cited ongoing emergencies such as drug trafficking and unlawful immigration to justify tariffs on Canada, Mexico, and China. Cryptopolitan Academy: Coming Soon – A New Way to Earn Passive Income with DeFi in 2025. Learn More

Source: Cryptopolitan