New York Attorney General Letitia James and Governor Kathy Hochul have announced a major lawsuit against President Donald Trump’s administration, joined by 11 other states, over what they describe as the “unlawful” imposition of sweeping tariffs.
Filed in the U.S. Court of International Trade, the lawsuit claims that Trump violated federal law by using the International Emergency Economic Powers Act (IEEPA) to unilaterally impose tax hikes on imports from nearly every country—including key U.S. allies and trading partners.
Why It Matters
Earlier this month, Trump unveiled a new round of tariffs, including a minimum 10-percent levy on most global imports and 25-percent duties on a broad array of goods from Mexico and Canada.
What To Know
The announcement sent financial markets into turmoil: Wall Street suffered its worst single-day loss since the early pandemic era, and global markets followed suit. Meanwhile, tensions with China have intensified, with tariffs now soaring as high as 145 percent on select goods.
Although the stock market has partially recovered, recession fears persist, and state officials are sounding the alarm over the potential fallout. With the Port of New York and New Jersey ranking among the nation’s busiest, leaders warn the region could face significant economic disruption from rising costs, slowed trade, and retaliatory tariffs.
Anthony Behar/Sipa USA/AP
What To Know
According to the lawsuit, Trump’s use of the IEEPA to impose tariffs oversteps the legal boundaries of presidential authority.
The law, the coalition argues, was never intended to grant a president the power to unilaterally implement sweeping, global duties.
The act enables a president to freeze and block transactions in response to foreign threats, but the coalition argues that the IEEPA only allows such actions in response to clear and extraordinary threats, not as a blanket tool for economic policy.
Yet, since February, the Trump administration has rolled out tariffs that now cover nearly every country worldwide—even territories with no trade activity or inhabitants, like the Heard Island and McDonald Islands, which have no known human inhabitants.
The states allege these actions violate both the Constitution and the Administrative Procedure Act (APA), and warn that the tariffs could fuel inflation, reduce wages, and drive up costs on essential goods like electronics and building materials.
The APA outlines the procedures that agencies must follow when issuing regulations and making decisions that affect the public.
They also argue that unchecked tariff hikes threaten to slow economic growth and increase unemployment, with particularly harsh impacts on working families and small businesses.
Economists warn the average household could lose thousands of dollars annually due to rising costs on essential goods, while the New York City Comptroller estimates over 35,000 jobs could be lost in the city if the tariffs trigger even a mild recession, according to the lawsuit.
Meanwhile, some state agencies could see huge increases, in the tens of millions, in costs and retaliatory tariffs—such as those threatened by Canada on electricity exports—which could drive up energy bills across the state.
The lawsuit also cites tangible damage already unfolding, including the announced closure of the Cortland Standard in New York, one of the nation’s oldest family-owned newspapers, partially due to anticipated tariffs on newsprint.
Joining New York in the legal action are the attorneys general of Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, Oregon, and Vermont.
California has already launched its own legal actions against the tariffs, filing a lawsuit last week that argues that Trump’s use of the IEEPA to impose duties is “illegal.”
What People Are Saying
New York Attorney General Letitia James wrote on X, formerly Twitter: “I’m suing the Trump administration with a multistate coalition of AGs for imposing worldwide illegal tariffs.
“These tariffs are unlawful and if not stopped, they will raise taxes on Americans and lead to more inflation, unemployment, and economic damage.”
James continued: “The president does not have the power to raise taxes on a whim, but that’s exactly what President Trump has been doing with these tariffs. Donald Trump promised that he would lower prices and ease the cost of living, but these illegal tariffs will have the exact opposite effect on American families. His tariffs are unlawful and if not stopped, they will lead to more inflation, unemployment, and economic damage.”
New York Governor Kathy Hochul said: “President Trump’s reckless tariffs have skyrocketed costs for consumers and unleashed economic chaos across the country. New York is standing up to fight back against the largest federal tax hike in American history. Attorney General James and I are partnering on this litigation on behalf of New York consumers, because we can’t let President Trump push our country into a recession.”
What Happens Next
The coalition is seeking a court order halting all IEEPA-based tariffs and preventing the Trump administration from implementing or enforcing them going forward.
