States and small businesses challenging President Donald Trump’s latest global tariffs have asked a Manhattan trade court to immediately block or suspend the new import duties as their legal case proceeds.
Trump invoked Section 122 of the Trade Act of 1974 to impose a 10% tariff on all imports, just hours after the U.S. Supreme Court struck down his previous tariffs under a different statute. Trump has indicated the new tariff could rise to 15%. Since Section 122 has never been used in this way, its constitutionality and limits have yet to be tested in court.
The administration maintains that the law empowers the president to levy tariffs of up to 15% for up to 150 days in response to international payment issues.
Democratic-led states and several small businesses have filed two separate lawsuits in the U.S. Court of International Trade, both challenging the Section 122 tariffs. While the cases remain distinct, they are moving forward in tandem.
The states asked the Court of International Trade to rule on the president’s new tariffs or pause them while the case moves forward. They noted they haven’t yet figured out how to get refunds from Trump’s first set of tariffs under the International Emergency Economic Powers Act, which the Supreme Court overturned in February.
“As the experience with IEEPA tariffs has proven, States will be harmed by paying more for goods, equipment, and services where third parties must pay the tariffs,” the Democrat attorneys general wrote in the motion. “And it will likely be infeasible for Plaintiff States to recover all of the costs.”
Small businesses, represented by the Texas-based nonprofit Liberty Justice Center, made a similar plea to the court.
“Once again, this Court is asked to rule on this administration’s imposition of tariffs based on dubious statutory authority,” attorneys wrote.
During Trump’s initial round of tariffs, courts permitted the administration to continue collecting import taxes as legal challenges played out. That practice ended with the Supreme Court’s February decision.
Trump has defended the tariffs and said the revenue could be used to pay for increased military spending and other priorities, including a tariff refund check for some Americans. However, experts have questioned whether tariffs will bring in enough money to cover those costly spending plans.
The Court of International Trade has ordered the federal government to respond to both lawsuits by April 3.
As the midterm elections approach, Trump’s tariffs are increasingly unpopular with voters. Rising prices, cited by seven in 10 Americans as a direct result of these tariffs, have become a central concern across party lines, according to recent polling.
Economic research has shown that U.S. consumers and businesses bear the bulk of the cost of import taxes.
