Twelve states sue the Trump administration over ‘tax hikes’ through tariffs | CNN Business


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Key Points

Twelve states filed a lawsuit against the Trump administration, claiming the tariffs imposed through the International Emergency Economic Powers Act (IEEPA) are illegal tax hikes.

The lawsuit argues that President Trump exceeded his authority under IEEPA, which the states contend was not intended for imposing tariffs.

The suit seeks to halt the tariffs and the impending worldwide reciprocal tariffs. Other groups including small businesses and the New Civil Liberties Alliance have filed similar lawsuits.

Main Arguments

  • The Trump administration's use of IEEPA to enact tariffs is unlawful.
  • The tariffs result in increased inflation, unemployment, and economic harm.
  • Congress never intended for IEEPA to be used for tariffs.

The White House spokesperson previously countered that trade deficits constitute a national emergency.

Crucial Details

The lawsuit was filed in the United States Court of International Trade by attorneys general from 12 states. California also filed a separate lawsuit on similar grounds. The suit alleges violations of the Constitution and the Administrative Procedure Act.

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New York CNN  — 

Twelve states sued the Trump administration Wednesday for “illegally imposing” tax hikes on Americans through tariffs.

Trump imposed the tariffs through the International Emergency Economic Powers Act (IEEPA), which gives the president the authority to enact those powers in response to unusual and extraordinary threats. The lawsuit seeks a court order to halt the tariffs under IEEPA, saying Trump does not have the authority he claims he does.

“In the nearly five decades since IEEPA was enacted, no other President has imposed tariffs based on the existence of any national emergency, despite global anti-narcotics campaigns spearheaded by the United States and longstanding trade deficits,” the lawsuit argued.

While Congress passed IEEPA, “Congress never intended it to be used for tariffs,” the suit reads.

The coalition of states joins other groups that have sued the Trump administration on tariffs. A group of small US businesses filed a lawsuit last week over the administration’s authority to impose tariffs, and New Civil Liberties Alliance (NCLA), a civil rights group, filed a complaint on similar grounds earlier in April.

In response to the small business lawsuit, White House spokesperson Harrison Fields previously said that trade deficits with other countries constitute a “national emergency.”

The lawsuit is filed by the attorneys general of New York, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, Oregon and Vermont.

“Donald Trump promised that he would lower prices and ease the cost of living, but these illegal tariffs will have the exact opposite effect on American families. His tariffs are unlawful and if not stopped, they will lead to more inflation, unemployment, and economic damage,” New York Attorney General Letitia James said in a press release.

The lawsuit, which was filed in the United States Court of International Trade, also seeks a court order to halt the impending worldwide reciprocal tariffs that were paused earlier in April. The coalition also argued that Trump has violated the Constitution and the Administrative Procedure Act.

Last week, California announced its own lawsuit against the Trump administration, also arguing the Trump administration lacked the authority to impose the tariffs and claiming it has caused “irreparable harm to California, its Governor, and its residents.”

CNN has reached out to the White House for comment.

Matthew Kaufman contributed to this report.

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