March 05, 2026
Kenny Holston/Imagn Images
President Donald Trump has 'cherry-picked' the Trade Act of 1974 to justify his latest waves of tariffs, two dozen state leaders argue in a new lawsuit.
Several state leaders have sued President Donald Trump over his recent tariffs, levied just days after the Supreme Court struck down his previous import taxes.
The lawsuit, which includes Pennsylvania Gov. Josh Shapiro (D) and New Jersey Attorney General Jennifer Davenport (D), argues that the president does not have the authority to impose tariffs. The Constitution has long granted Congress the power to levy taxes and duties. But the Trump administration has attempted to skirt that established rule, the document says, by citing a section of the Trade Act of 1974 that grants the president limited authority to address "balance-of-payments deficits." It has never been used to impose tariffs or, as the plaintiffs write, it has never been used "at all."
That is no accident, the attorneys general and governors say. They claim the law, which Trump has "cherry-picked" to suit his argument, does not grant the president sweeping tariff powers. Furthermore, since the United States abandoned the gold standard, the scenario the Trade Act was designed to resolve "can no longer exist."
"This President’s tariffs have done nothing but cause chaos and raise prices for our farmers, small businesses, and families," Shapiro wrote in a message posted to X. "I’ve gone to court before to protect Pennsylvanians from the costs of this disastrous trade war — and I’m ready to do it again."
The president had previously relied on the International Emergency Economic Powers Act to impose broad taxes on goods from Canada, Mexico, China and other nations. But the Supreme Court ruled Feb. 20 that the IEEPA did not give Trump the right to levy tariffs. He responded by enacting 10% global duties just four days later. They will soon increase to 15%, his treasury secretary said Wednesday.
"The Supreme Court got it right — but instead of following the law, Trump decided to double down," Shapiro said in his social media post.
The lawsuit includes attorneys general from 22 states, as well as Shapiro and Gov. Andy Beshear (D) of Kentucky. The coalition has asked the court to declare Trump's actions "a violation of the separation of powers." It is also seeking refunds from the federal government for tariffs paid — an issue that the Supreme Court did not address in its February tariff decision.
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