24 States Sue Trump Administration Over New 15% Global Tariffs

The Trump administration’s aggressive trade policy has entered a volatile new chapter as a coalition of 24 states, led by attorneys general from Oregon, Arizona, California, and New York, filed a comprehensive lawsuit to block a new wave of global tariffs. This legal action targets the administration's invocation of Section 122 of the Trade Act of 1974, a move made shortly after the Supreme Court struck down previous tariffs imposed under the International Emergency Economic Powers Act (IEEPA). For the e-commerce and retail sectors, this represents a period of profound uncertainty, as the 10% to 15% surcharges threaten to further inflate the cost of imported goods and disrupt global supply chains already reeling from years of trade friction.

The core of the legal dispute rests on the separation of powers. The states argue that President Trump is attempting an end-run around the judiciary by pivoting to a different, rarely used statute to achieve the same protectionist goals that the Supreme Court recently deemed unconstitutional. Section 122 was designed to address large and serious United States balance-of-payments deficits through temporary surcharges, but it has never been used in this manner. By applying these tariffs globally rather than targeting specific imbalances, the administration is testing the limits of executive authority over international commerce. The Congressional Research Service has noted the lack of judicial precedent for Section 122, making this a landmark case for trade law.

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collected approximately $287 billion in customs duties and fees—a nearly 200% increase from the prior year.

From a market perspective, the financial stakes are staggering. In 2025, the U.S. collected approximately $287 billion in customs duties and fees—a nearly 200% increase from the prior year. While the White House maintains that foreign exporters absorb these costs, data from the New York Federal Reserve Bank suggests a different reality for the American consumer. Estimates indicate that the average household is bearing an additional $1,200 annually in costs directly linked to these trade policies. For retail giants and e-commerce platforms, these tariffs act as a regressive tax, forcing a choice between absorbing the costs and sacrificing margins or passing them on to consumers, which could dampen demand in an already sensitive economic environment.