In a significant move, twelve US states have filed a lawsuit against the Donald Trump-led administration in an attempt to stop its controversial and economically reckless tariff policy. The legal action, which was filed on April 23, 2025, in the US Court of International Trade in New York, challenges the Trump administration's tariff decisions as unlawful and claims they have caused turmoil in the American economy.

The lawsuit centers on President Trump’s reliance on the International Emergency Economic Powers Act (IEEPA) to impose tariffs, which, according to the filing, is an overreach of presidential powers. The states argue that only Congress has the constitutional authority to impose tariffs, not the president. The legal challenge highlights that the IEEPA grants the president powers to act in times of an emergency, but this power is only meant for unusual and extraordinary threats from foreign countries. By using the act to impose sweeping tariffs on goods, the lawsuit contends that Trump has bypassed constitutional checks and balances, resulting in economic chaos. The states are seeking to have the tariffs declared illegal and have asked the court to issue an injunction to stop further enforcement of these measures.

Arizona Attorney General Kris Mayes was particularly vocal in her criticism, calling Trump's tariff strategy "insane" and stating that it is both "economically reckless" and illegal. In a statement, Mayes argued that Trump's actions have caused severe uncertainty in trade relationships, undermining years of structured policymaking. The lawsuit points to the unpredictability of Trump's approach to trade and the negative effects it has had on various sectors of the economy.

The 12 states named in the lawsuit include Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, New York, Nevada, New Mexico, Oregon, and Vermont. These states argue that Trump's approach has undermined the stability of trade relations, affecting businesses, workers, and consumers across the nation.

A key point in the lawsuit is the challenge to the reciprocal tariffs that Trump recently imposed on several countries, including India. These new tariffs were introduced by Trump as a response to what he called "unfair" tariffs levied by foreign nations on US goods. Among the countries targeted is India, where Trump introduced a 26% reciprocal tariff, citing the high duties imposed by India on American products. Trump presented a chart showing how countries like India, China, the United Kingdom, and the European Union would now face these reciprocal tariffs.

The reciprocal tariffs were presented as a way to address trade imbalances, with Trump pushing for more favorable terms for the United States in its trade dealings. However, critics argue that these tariffs will only escalate global trade tensions and harm the American economy, especially businesses reliant on imports and exports.

The lawsuit's core argument is that the use of emergency powers to impose tariffs on foreign nations does not align with the legal framework for trade policy, and it disrupts the normal processes of trade negotiations. The plaintiffs believe that the administration’s approach undermines the rule of law and jeopardizes the economic stability of the country.

As the case proceeds in court, the Trump administration has yet to issue a statement regarding the lawsuit. However, the outcome of this legal battle could have significant implications for US trade policy, particularly regarding the extent of presidential powers under the International Emergency Economic Powers Act.

This lawsuit underscores the deepening political and legal divide in the United States regarding trade practices and the balance of power between the executive branch and Congress. The coming weeks may bring more clarity on whether the Trump administration's tariff strategy will continue or face serious legal challenges.

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