April 23 (UPI) — A coalition of 12 states with Democratic leaders on Wednesday sued the Trump administration regarding “illegal tariffs.”
The attorneys general allege that the federal government doesn’t have the authority to enact duties without congressional approval.
The lawsuit, which was filed in the United States Court of International Trade, also seeks to halt future reciprocal tariffs paused on April 9 for 90 days. On Wednesday, President Donald Trump said it could enact them sooner if deals aren’t made with trading partners in the “next two or three weeks.”
Trump imposed the tariffs through the International Emergency Economic Powers Act, which gives the president the authority to enact those powers in response to “threats of national security.”
“In the nearly five decades since IEEPA was enacted, no other President has imposed tariffs based on the existence of any national emergency, despite global anti-narcotics campaigns spearheaded by the United States and longstanding trade deficits,” the lawsuit argued.
“Congress never intended it to be used for tariffs.”
White House spokesperson Harrison Fields has said that trade deficits with other countries constitute a “national emergency.”
The lawsuit was filed by the attorneys general of Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, New York, Nevada, New Mexico, Oregon and Vermont.
“Congress has not granted the president the authority to impose these tariffs and therefore the administration violated the law by imposing them through executive orders, social media posts, and agency orders,” New York Attorney General Letitia James’ office said in a statement.
“Donald Trump promised that he would lower prices and ease the cost of living, but these illegal tariffs will have the exact opposite effect on American families. His tariffs are unlawful and if not stopped, they will lead to more inflation, unemployment, and economic damage.”
A New York news release said the tariffs “will cost the average family thousands of dollars per year.” In addition, other nations have slapped tariffs on exported products, which would affect businesses in the United States, including autos, pharmaceuticals, agricultural products and timber.
New York Gov. Kathy Hochul said: “New York is standing up to fight back against the largest federal tax hike in American history. Attorney General James and I are partnering on this litigation on behalf of New York consumers, because we can’t let President Trump push our country into a recession.”
A report from the New York City comptroller estimated that even a mild recession because of tariffs would lead to more than 35,000 lost jobs in New York City.
Last week, California announced its own lawsuit against the Trump administration, also claiming the Trump administration lacked the authority to impose the tariffs and it has caused “irreparable harm to California, its Governor, and its residents.”
On “Liberation Day” on April 2, Trump said he will impose a baseline tariff of 10% on most trading partners.
“We’ve been ripped off by every country in the world practically, friend and foe, and we’re not doing that anymore,” Trump said Wednesday.
The “worst offenders” would be subject to reciprocal ones, including 145% against China.
China has responded with a 125% boost. Cambodia was hit with 49% and Vietnam at 46%.
Canada and Mexico were not par of the 10% baseline tariffs or reciprocal ones because earlier there was levy of 25% on most products. Also goods that are part of the United States-Mexico-Canada Agreement are excluded.
He is threatening higher ones against Canada.
“They took a large percentage of the car industry and I want to bring it back to this country. I really don’t want cars from Canada,” Trump said. “So when I put tariffs on Canada, they’re paying 25%, but that could go up in terms of cars.”
Trump has softened his stance against China, saying Tuesday he wasn’t going to play “hardball” with China. and the 145% rate will eventually “come down substantially.” Trump the two nations have had correct contact daily.
Earlier Wednesday, Treasury Secretary Scott Bessent said: “There is an opportunity for a big deal.” He spoke at an event hosted by the Institute of International Finance.
The stock markets in the United States reacted positively to possible trade deals. The Dow Jones Industrials were up 419.59 points, or 1.07% to 39,606.57, the Standard and Poor’s 500 rose 88.1, or 1.67% to 5,375,86 and the Nasdaq Composite climbed 407.63, or 2.5%, to 16,708.05.
The averages are way off the records of the DJIA of 45,014 on Dec. 4,2024; S&P of 61,44.15 on Feb. 9; and Nasdaq of 20,173.89 on Dec. 16, 2024.
