A group of almost a dozen US states sued President Donald Trump’s administration to block the 10% global tariffs imposed in the aftermath of the Supreme Court tariffs decision.
Trump signed a proclamation implementing a 10% global tariff under Section 122 of the Trade Act of 1974 on Feb. 20, the same day the high court overturned his country-specific duties. The law authorizes a president to impose temporary tariffs of up to 15% for 150 days.
The coalition of states, led by New York Attorney General Letitia James, filed a lawsuit with the US Court of International Trade on March 5. The states are seeking an order that prevents the Section 122 tariffs from being implemented and would require the federal government to issue refunds to states for the tariffs costs they paid.
They argue that the tariffs do not meet the requirements of Section 122 and violate the Constitution’s protection of the separation of powers, pointing to how only Congress has the power to tax and impose tariffs, not the president. The Supreme Court referenced a similar argument in its decision, determining that the International Emergency Economic Powers Act of 1977, which Trump invoked to implement the country-specific duties, does not authorize a president to impose such executive action.
The coalition argues Trump’s order does not meet other requirements of Section 122, including that tariffs should be applied consistently without product exceptions, and does not meet the definition of a “balance of payments” deficit required by the law.
They say in the court filing that Trump’s changes in tariff policy create significant costs for states as agencies piece together policy from social media posts, executive orders, proclamation and other sources.
The Trump administration will “vigorously defend the president’s action in court,” Kush Desai, a White House spokesperson, said in a statement to Platts, a part of S&P Global Energy.
“The President is using his authority granted by Congress to address fundamental international payments problems and to deal with our country’s large and serious balance-of-payments deficits,” Desai said.
James is joined by attorneys general from 21 other states as well as Pennsylvania Governor Josh Shapiro and Kentucky Governor Andy Beshear. She led a similar lawsuit in April 2025 with 11 other attorneys generals to halt the IEEPA tariffs.
No president has imposed tariffs under Section 122. Trade attorneys have raised legal questions about the law’s implementation, but said they’d be surprised if the courts issued an injunction against a tariff that lasts only five months.
However, if Trump seeks to extend the 150-day time frame or issue a new proclamation to reset the clock, the administration will likely face additional litigation.
The Section 122 tariff exempts USMCA-compliant goods and does not stack on top of Section 232 sectoral tariffs, which include 50% rates on steel, aluminum and copper imports. While most metals are exempt from the Section 122 tariffs, some materials, like pig iron, will face the new rate. However, the 10% duty is lower for some countries than what was previously imposed under the per-country IEEPA duties.
Other materials, like aluminum scrap, are mostly exempt from Section 122, but only because they fall under the exemptions for USMCA-compliant goods from Canada and Mexico.
