New York Attorney General Letitia James has led a coalition of 21 other attorneys general and the governors of Kentucky and Pennsylvania in filing a lawsuit to stop the Trump administration from imposing new tariffs. The group argues that these tariffs, enacted under Section 122 of the Trade Act of 1974, are illegal because the president lacks authority to impose them.
The lawsuit follows a recent Supreme Court decision siding with James and other attorneys general who challenged previous tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Shortly after that ruling, President Trump issued a new proclamation introducing additional tariffs on various countries and goods.
Attorney General James stated, “Once again, President Trump is ignoring the law and the Constitution to effectively raise taxes on consumers and small businesses. After the Supreme Court rejected his first attempt to impose sweeping tariffs, the president is causing more economic chaos and expecting Americans to foot the bill. These tariffs will only drive up the cost of living, and I will continue to uphold the rule of law to protect New Yorkers.”
Governor Hochul added, “The Trump administration’s illegal and reckless tariff policies continue to weigh on the businesses, farmers, and consumers across New York State, hindering the state’s overall economy. It is time the federal government refunds the $13.5 billion taken from hardworking New Yorkers and end the economic chaos that these unlawful taxes have created. I applaud Attorney General James for fighting for New Yorkers and look forward to continuing to work with her to put money back into the pockets of our families and workers.”
No previous president has used Section 122 in this way. The provision was originally intended for use during specific monetary crises related to fixed-rate exchange systems like those under a gold standard—systems abandoned by the United States decades ago. The coalition contends that using trade deficits as justification does not meet Section 122 requirements; even administration officials previously acknowledged that trade deficits differ conceptually from balance-of-payments deficits.
Additionally, critics argue that these new tariffs violate consistency rules in Section 122 by exempting many products from certain countries such as Canada, Mexico, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua while also listing numerous product exceptions over dozens of pages.
James’s coalition claims this latest action is an attempt by President Trump to bypass restrictions set by recent court decisions against his earlier tariff measures. They say abrupt changes in tariff policy create administrative burdens for states as they adapt budgets amid fluctuating vendor prices. Agencies must interpret official guidance scattered across multiple platforms including social media posts and executive orders.
In their legal filing at the United States Court of International Trade, James’s team asserts that Congress—not the president—holds constitutional authority over taxation and tariffs. They seek an order declaring these Section 122 tariffs illegal along with refunds for costs incurred by states while they were enforced.
The attorneys general joining this suit represent Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Rhode Island,Oregon,Vermont,V irginia ,Washington,Wisconsin,and include Kentucky’s governor Andy Beshear along with Pennsylvania Governor Josh Shapiro.
Letitia James heads the New York Attorney General, which operates through regional offices across New York State providing services such as consumer fraud investigations,charities oversight,and tenant dispute mediation.The agency acts as public law enforcement,legal advocacyand works toward community well-being through civil rights enforcement.It also protects residents’ rights,safety,and environment.
