25 States Sue Trump Over New Tariffs on 60 Partners 2026

Twenty-five US states have filed a lawsuit against the Trump administration over new tariffs on 60 trading partners, calling the tariffs an illegal attempt to raise taxes on families and businesses. The states argue the tariffs, set at 10% to 12.5%, violate the Constitution after the Supreme Court struck down earlier tariffs in February. This legal challenge seeks to halt the tariffs, declare them unlawful, and order refunds of duties already paid.

Background of the New Tariffs

The tariffs, imposed in July, affect goods from 59 countries and the European Union, which together account for 99.4% of US imports. The administration justified them under Section 301 of the Trade Act of 1974, targeting countries accused of using forced labor. However, the states argue that the president lacks the power to impose sweeping tariffs without congressional approval.

Key States Leading the Lawsuit

New York Attorney General Letitia James is leading the coalition, which includes states like California, Illinois, and Michigan. The lawsuit was filed in the US Court of International Trade, asking for an injunction and refunds for duties already collected. The states emphasize that the administration is trying to circumvent the Supreme Court's earlier ruling.

Impact on Trade and Economy

These tariffs affect major trading partners including the UK, Australia, Canada, Japan, Taiwan, and China. Businesses and consumers could face higher prices on imported goods, potentially disrupting supply chains. According to the states, the tariffs represent a significant tax increase on American families and businesses, which could slow economic growth.

Legal Arguments and Precedent

The states argue that the tariffs violate the separation of powers, as the Constitution grants Congress the power to regulate foreign commerce. The Supreme Court's February ruling set a precedent, and the new tariffs are seen as an attempt to bypass that decision. The lawsuit also follows a separate suit by the Liberty Justice Center on behalf of two small businesses.

Comparison of Tariff Rounds

Key Takeaways

• 25 states are suing to stop tariffs on 60 trading partners.
• Tariffs range from 10% to 12.5% and affect 99.4% of US imports.
• Legal basis is Section 301, but states claim it's unconstitutional.
• Refunds of paid duties are being requested.
• Major partners like China, UK, and Canada are impacted.

What This Means for Businesses

Businesses importing goods from affected countries may face higher costs and legal uncertainty. The lawsuit could lead to a temporary halt or permanent removal of the tariffs, but until a ruling, companies should prepare for potential price increases. Small businesses, in particular, may struggle to absorb these costs.

FAQ

As the legal battle unfolds, the outcome will have significant implications for US trade policy and the economy. Stay informed on this developing story.