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Home Business & Economy

Trump Administration Faces Lawsuit Over Tariff Policy

April 24, 2025
in Business & Economy, Global News
Reading Time: 2 mins read
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A group of 12 U.S. states, including Arizona, Minnesota, and New York, filed a lawsuit against the Trump administration on Wednesday. The suits argues that the president’s tariffs are illegal without Congress approval.

Arizona Attorney General Kris Mayes called the tariffs “economically reckless” and “illegal.” California had filed a similar lawsuit the previous week.

President Trump’s second-term tariffs, including a 145% levy on Chinese imports and 10% on other trade partners, have disrupted markets and overturned decades of free trade policy. China retaliated with 125% tariffs on U.S. goods.

The states insist that the 1977 law Trump used does not give him the authority to impose tariffs as emergency measures, a power reserved for Congress. The lawsuit alleges Trump’s actions disrupt the constitutional order and harm the economy, with tariffs acting as a tax on consumers.

Trump insists his policies will bring manufacturing jobs back to the U.S. His approval rating has dropped to 44%. And Democrats are highlighting the economic damage caused by the tariffs. This includes California Governor Gavin Newsom, who called Trump’s tariff policy “the worst own-goal in the history of this country.”

WHAT YOU SHOULD KNOW

The lawsuit by 12 U.S. states against the Trump administration’s tariffs is a significant challenge to the president’s trade policy, with far-reaching implications for constitutional law, economic stability, and global trade.

The states argue that Trump’s use of the International Emergency Economic Power Act (IEEPA) to impose tariffs is illegal, economically damaging, and disruptive to the constitutional order, while the administration defends the tariffs as necessary to protect American interests.

The case, alongside similar lawsuits from California and businesses, underscores deep divisions over trade policy and executive power.

As the litigation unfolds, it will test the judiciary’s role in checking presidential authority and shape the future of U.S. economic policy.

The tariffs continue to drive up costs, provoke retaliation, and fuel uncertainty, with both sides digging in for a protracted legal and political battle.

ALSO READ TOP STORIES FROM VERILY NEWS

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