States Sue Trump: 25 Challenge "Unconstitutional" Tariffs on 60 Countries in High-Stakes Trade Clash

Twenty-five American states have challenged the Trump administration in the U.S. Court of International Trade, claiming the new tariffs on imports from 60 countries are unconstitutional and beyond presidential authority. They claim the government used tariff authority in a manner that essentially reintroduced taxes currently rejected by the courts instead of adhering to the legal procedure mandated by law.

The states want the court to declare the tariffs illegal, halt them, and perhaps even reimburse payments already made. For markets, the main problem is that these taxes apply to a very large fraction of U.S. imports; therefore, a court decision against the government might influence import costs, supply chains, and inflation.