New York Attorney General Letitia James called on March 18 for Congress to pass legislation that would require the federal government to provide swift refunds for extra costs paid by businesses and consumers due to tariffs imposed under President Trump. James led a coalition of 17 other attorneys general in this effort, following a Supreme Court decision on February 20 that struck down the tariffs as unlawful.
The issue is significant because businesses and individuals across the country have paid an estimated $166 billion in tariffs that were later ruled illegal, leading to higher prices that especially affected low-income consumers. “New Yorkers were charged illegal taxes for months because of this administration’s tariff policy. Now they deserve a refund,” said James. “These tariffs hurt businesses across our state and raised the cost of groceries, clothes, and other essentials. If this administration won’t do the right thing and give New Yorkers their money back, Congress must step in to get justice for consumers and businesses.”
In April 2025, President Trump imposed broad tariffs using authority claimed under the International Emergency Economic Powers Act (IEEPA). Shortly after, James and attorneys general from 11 other states sued, arguing IEEPA did not grant such power. The Supreme Court sided with them but did not rule on whether importers should be reimbursed. According to court filings cited by James’s office, the administration had previously committed to refunding tariff costs with interest if the tariffs were found unlawful.
The impact has been substantial in New York: state businesses and consumers have paid about $13.5 billion due to these tariffs, with over $1 billion in increased prices just in January 2026 alone. The coalition’s letter urges Congress to create a process requiring automatic refunds through U.S. Customs and Border Protection (CBP), which tracks all payments but currently only offers refunds via a direct deposit platform used by six percent of importers.
James also called for measures ensuring that importers who passed tariff costs onto customers return those funds as well. She noted that cheaper products saw faster price increases than expensive goods during this period, disproportionately affecting low-income residents.
Letitia James heads the New York Attorney General’s office according to the official website. The agency promotes social justice through civil rights enforcement and consumer advocacy according to its official website, protects New Yorkers’ rights and safety according to its official website, operates regional offices statewide according to its official website, provides services like fraud investigations and tenant dispute mediation according to its official website, and serves as a public law enforcement agency for New York according to its official website.
Joining James are attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Vermont, Virginia, and Washington.
