Virginia and North Carolina are among the 20 states with attorneys general suing the Trump administration over the president's recently-issued tariffs.
Four days after the Supreme Court struck down his sweeping International Emergency Economic Powers Act (IEEPA) tariffs, Trump invoked Section 122 of the Trade Act of 1974 to slap 10% tariffs on foreign goods. Treasury Secretary Scott Bessant told CNBC on Wednesday that the administration would raise the levies to the 15% limit this week.
Section 122, which has never been invoked, allows the president to impose tariffs of up to 15%, though they’re limited to five months unless extended by Congress.
The states argue that Section 122 was intended to be used only in specific, limited circumstances and does not give Trump authority to impose sweeping import taxes. It also contends the tariffs will drive up costs for states, businesses and consumers. Many of those states also successfully sued over Trump’s tariffs imposed under the IEEPA.
Citing a Yale study, North Carolina Attorney General Jeff Jackson said the Trump administration's tariffs have costed residents of the Tar Heel State an estimated $800 to $1,300.
“North Carolinians have already paid billions in unlawful tariffs – our farmers, our manufacturers, and our communities can’t bear more,” Jackson said.
Also joining the lawsuit are the attorneys general of Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Rhode Island, Vermont, Washington, Wisconsin, and the governors of Kentucky and Pennsylvania.
