In the US, tariffs imposed by the Donald Trump administration have once again been challenged in court. 24 states have sued the federal government, alleging that President Donald Trump exceeded his authority by imposing new global tariffs despite a Supreme Court ruling in February.
In a lawsuit filed on Thursday, a total of 24 states argued that the 10% import tariffs imposed by the Trump administration under Section 122 of the 1974 Trade Act were illegal. President Trump later announced plans to raise these tariffs to 15%.
The states argued that the practice violated the principle of separation of powers enshrined in the Constitution. The lawsuit stated that the President could not exercise the power to impose tariffs without express authorization from Congress.
Last month, the US Supreme Court ruled by a 6-3 vote that the emergency tariffs imposed by Trump last year could not be applied under the International Emergency Economic Powers Act (IEEPA) of 1977. The court stated that the President did not have the authority to impose tariffs under this law.
The states stated the following in their lawsuit:
“As he has done before in his unlawful use of the IEEPA, the President is once again undermining the constitutional order and causing chaos in the global economy by exercising an authority to set tariffs to which he does not have the right.”
The Trump administration argues that import tariffs are implemented to ensure fairness in global trade, increase investment in the US, and boost government revenue. According to official data, the US collected a total of $287 billion in 2025 from tariffs, duties, and other import revenues. This represents a 192% increase compared to the previous year.
In their lawsuit, the states are asking the U.S. International Trade Court to rule that the tariffs imposed under Section 122 are illegal. They are also seeking reimbursement for the costs incurred while the tariffs were in effect.
*This is not investment advice.
