On April 23, 2025, twelve states initiated legal action against the Trump administration, asserting that the recently imposed tariffs could constitute an unlawful tax increase.
States including Oregon, Arizona, Colorado, and nine others contend that President Trump may have misapplied the International Emergency Economic Powers Act (IEEPA).
The Trump administration instituted a 10% tariff on global imports, a 25% tariff on goods from Canada and Mexico, and a 145% tariff on imports from China, all without congressional authorization.
The lawsuit, filed in the U.S. Court of International Trade, seeks to prevent the enforcement of these tariffs.
The states argue that the IEEPA, established in 1977 for national emergencies, does not grant authority for the imposition of tariffs.
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They challenge the administration’s rationale that trade deficits, migration, and the fentanyl crisis warrant such measures. New York Attorney General Letitia James expressed concerns regarding potential inflationary effects, while Arizona Attorney General Kris Mayes described the tariffs as “reckless.”
In addition, small businesses and the New Civil Liberties Alliance have brought forward similar legal challenges, highlighting the potential adverse impacts on companies and questioning the extent of executive power.
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The administration, meanwhile, defends the tariffs as essential for promoting trade and enhancing national security. A request for a temporary injunction was declined on April 23, and the legal proceedings are ongoing.
