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A coalition of 24 U.S. states has filed a lawsuit against President Donald Trump seeking to block a new 10% global tariff on imports, arguing he lacks the legal authority to impose the measure. The states claim the administration is improperly using Section 122 of the Trade Act of 1974, which allows temporary tariffs to address balance-of-payments crises, despite economists saying the U.S. does not face such a problem. The challenge follows a recent Supreme Court ruling that struck down Trump’s earlier tariffs, and if successful could force the government to refund billions of dollars in tariff revenue. The case adds further legal uncertainty to Trump’s broader strategy of using tariffs to reshape global trade and support domestic manufacturing.
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