Donald Trump’s administration has been sued by a coalition of 24 US states over his tariffs. They claim the US President has imposed tariffs illegally which has caused « chaos » on the national economy.
The mostly Democratic coalition is being led by Dan Rayfield, Oregon Attorney General, who has accused Trump of « doubling down on illegal tariffs ». He said the tariffs have led to a surge in prices with bills set to become « unmanageable » if the situation continues. According to the lawsuit from the Oregon Department of Justice, experts estimate the cost of living for the average family in the state will increase by more than $1,200 a year.
Attorney General Rayfield said: « The focus right now should be on paying people back, not doubling down on illegal tariffs. People are already making hard choices about what to put in their shopping cart. Prices on basics like groceries, clothing and other essentials have all been skyrocketing. At some point, the bills become unmanageable. »
The Supreme Court rejected a swath of tariffs imposed by Trump under the International Emergency Economic Powers Act (IEEPA) on February 20. They ruled the law did not give him the power to introduce the tariffs he wanted.
He reacted by announcing 10% global tariffs under Section 122 of the Trade Act of 1974, which allows the president to declare a tariff of up to 15% without congressional approval for 150 days. Trump argues the tariffs will promote domestic manufacturing and protect national security while the opposing 24 states insist he is acting unlawfully.
The states say the Trade Act only allows for tariffs that address a « balance of payments », including a sudden drop of the dollar in foreign exchange markets, and are calling for them to be blocked. However, Trump claims the tariffs will address US « trade deficits », arguing that they currently import more than they export.
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According to the lawsuit against Trump’s administration, small businesses in states such as Oregon rely on imports. Therefore, stability in trade policy is vital for them to survive.
George Domurot, founder and CEO of Ranger Chocolate, said: « Tariffs create real and immediate pressure for small manufacturers like ours. Many of the core ingredients we rely on – including cacao – simply cannot be grown in the United States. When trade policy becomes unpredictable, it directly impacts our cost structure, pricing stability, and long-term planning. »
The lawsuit explains: « Today’s lawsuit challenges this latest round of tariffs. The complaint contends that these actions by President Trump and his administration violate the law, upend constitutional separation of powers, and violate the Administrative Procedure Act. »
Meanwhile, Treasury Secretary Scott Bessent said the US was « likely » to implement a 15% global tariff this week. He told CNBC: « It’s my strong belief that the tariff rates will be back to their old rate within five months. »
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