25 States Sue Trump Over New Tariffs on 60 Trading Partners 2026

Daniel Harrolds
25 States Sue Trump Over New Tariffs on 60 Trading Partners
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Twenty-five US states have filed a lawsuit against the Trump administration over new tariffs on 60 trading partners, arguing that the tariffs are an illegal attempt to bypass a Supreme Court ruling. The states are seeking to halt the tariffs, which range from 10% to 12.5%, and demand refunds for duties already paid. This legal challenge could reshape US trade policy and impact businesses nationwide.

Why the States Are Suing Over the New Tariffs

The coalition, led by New York Attorney General Letitia James, contends that the tariffs violate the Constitution because the president lacks the authority to impose sweeping import taxes without congressional approval. The Supreme Court struck down the earlier “Liberation Day” tariffs in February, but the administration quickly reimposed similar duties using Section 301 of the Trade Act of 1974, citing forced labor concerns.


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The states argue that this is a “pretext” to replace the tariffs that were ruled unconstitutional. According to the lawsuit, the new tariffs affect 99.4% of US imports from 59 countries plus the European Union, including major partners like the UK, Australia, Canada, Japan, Taiwan, and China.

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Key Arguments in the Lawsuit

  • Illegal taxation: The tariffs are described as an unconstitutional tax on families and businesses.
  • Supreme Court precedent: The action directly challenges the administration's attempt to circumvent a prior court ruling.
  • Economic harm: The states claim the tariffs will raise costs for consumers and disrupt supply chains.
  • Legal remedy: The states request an injunction, a declaration of unlawfulness, and refunds of all collected duties.

Which States Are Involved?

Besides New York, the lawsuit includes Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Virginia, Vermont, Washington, and Wisconsin. The governors of Kentucky and Pennsylvania have also joined the action.

This broad geographic coalition signals strong bipartisan opposition to the tariffs, with many states relying heavily on international trade for their economies.

Comparison: Previous vs. New Tariffs

Tariff Type Legal Basis Status
Liberation Day Tariffs IEEPA (struck down) Ruled unconstitutional in Feb
New Tariffs (2025) Section 301 Trade Act Challenged in current lawsuit

What This Means for Businesses and Consumers

If the court rules in favor of the states, the tariffs could be halted, and businesses might receive refunds for duties paid since July. However, the legal process could take months, leaving uncertainty for importers and exporters.

Companies should monitor the case closely and prepare for potential changes in trade policy. The outcome could set a precedent for how presidents use trade laws to impose tariffs without Congress.

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Key Takeaways

  • The lawsuit challenges the legality of tariffs on 60 trading partners.
  • 25 states plus two governors are involved.
  • The tariffs range from 10% to 12.5% and cover 99.4% of US imports from affected countries.
  • Businesses may be eligible for refunds if the tariffs are declared unlawful.

FAQ

What are the new tariffs on 60 trading partners?

The new tariffs are import taxes ranging from 10% to 12.5% imposed on goods from 59 countries and the European Union, justified under Section 301 of the Trade Act of 1974.

Why are 25 states suing the Trump administration?

The states argue that the tariffs are an unconstitutional attempt to raise taxes without congressional approval, following a Supreme Court ruling that struck down similar tariffs in February.

What could happen if the states win the lawsuit?

If the states win, the tariffs would be halted, and importers could receive refunds for duties already paid, potentially lowering costs for businesses and consumers.

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Daniel Harrolds

Author

Daniel Harrolds

With a career spanning four decades, Daniel is almost a library in the field of precious metals investing and Gold IRAs. His insightful strategies and pragmatic results-oriented approach make him a resource in safeguarding wealth, and financial foresight.


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